Goldman Sachs collaborates with BNY Mellon to bring the $7 trillion money market into the encryption space.

On July 24, Goldman Sachs Group (GS.US) and Bank of New York Mellon (BK.US) announced a groundbreaking collaboration plan aimed at integrating blockchain technology into the money market fund (MMF) ecosystem and promoting further convergence of traditional finance and digital asset infrastructure.

The core of this collaboration is that the two financial giants plan to utilize Goldman Sachs' GS DAP® private blockchain platform to establish tokenized records of client ownership for specific money market funds (MMF) through blockchain distributed ledger technology, marking the first such innovative application in the U.S. financial market.

This collaboration has attracted top asset management companies such as BlackRock and Fidelity Investments. Through the LiquidityDirectSM platform of BNY Mellon, investors can directly subscribe to and redeem tokenized fund shares. This innovation does not replace traditional financial record systems, but rather overlays a blockchain layer on the existing system to enhance asset liquidity and utilization efficiency.

Goldman Sachs' GS DAP® is built on Digital Asset's smart contract technology, providing programmable financial functions for institutions, and has completed pilot bond issuances in the Asia-Europe market. The Bank of New York Mellon is responsible for official custody duties, enhancing asset transfer efficiency using blockchain technology under compliance.

Executives from Bank of New York Mellon stated that this collaboration marks a significant breakthrough in the digital transformation of financial infrastructure. Meanwhile, the head of digital assets at Goldman Sachs indicated that the technology can enhance the efficiency of collateral usage in money market funds, laying the groundwork for the tokenization of other financial assets such as stocks and bonds. Currently, the collaboration primarily covers the U.S. market, but both executives have expressed intentions to expand this model to global markets.

In summary, this strategic cooperation marks a key step in the deep integration of traditional finance and blockchain technology. When the $70 trillion money market fund market embraces tokenization technology, it will not only significantly enhance the operational efficiency of existing financial infrastructure but may also trigger a chain reaction of digital transformation across the entire financial industry. From a more macro perspective, this move could reshape the operating model of global capital markets and open up new possibilities for financial innovation.

#高盛 # Bank of New York Mellon #MMF tokenization