Goldman Sachs and BNY Mellon have launched tokenized money market funds (TMMFs) on blockchain, aiming to tap into the large $7.1 trillion U.S. money market.
This effort is ushering in a new era of efficiency, transparency, and real-time liquidity for institutional investors. It was launched on July 23, 2025, and brings together some of the largest names in the financial industry, including Federated Hermes, Fidelity Investments, and BlackRock.
Clients of BNY Mellon, including corporate treasurers, hedge funds, and pensions, can now invest in money market funds. The funds’ ownership records are safely stored on Goldman Sachs’ in-house blockchain platform, thanks to the introduction. These digital tokens enable immediate settlement, round-the-clock market access, and transparent ownership, in contrast to traditional fund shares that rely on outdated settlement rails.
The Value Of Tokenized Market Funds
For many years, people have regarded money market funds as safe havens because of their short-term maturity, liquidity, and consistent return track record. On the other hand, legacy settlement processes can take up to two days, thereby increasing counterparty risk and tying up funds for extended periods.
This window is drastically shortened to almost instantaneous by the new tokenized format, allowing fund managers and institutional clients to:
- Earn competitive yields by parking significant balances on the chain.
- Transfer assets between platforms with ease for arbitrage or rebalancing.
- Lower operating expenses and lessen the danger of clearance delays.
- Tokenized money market shares produce actual returns, in contrast to stablecoins, which usually offer no yield. This makes them particularly appealing to institutions looking for both income and liquidity.
The effort promises unparalleled participation from the world’s most powerful asset managers, including support from BlackRock and Fidelity. Their participation confirms blockchain as an institutional-grade technology and indicates widespread industry acceptance of the tokenization of conventional financial products.
The project’s timing coincides with a crucial regulatory juncture. The recent GENIUS Act, a bipartisan bill that established a legal framework for stablecoins and outlawed interest-bearing versions, has forced banks and asset managers to look for new on-chain solutions that can give customers income in addition to cash alternatives.
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