Goldman Sachs, BNY Mellon Launch Tokenized Money-Market Funds

Goldman Sachs Group Inc. and Bank of New York Mellon Corp. are preparing to let institutional clients buy and hold money-market fund shares that are recorded on a private blockchain. The firms have developed a system that tokenizes fund units, allowing ownership to be settled and recorded in real time on a ledger run by Goldman.

The initiative, backed by asset-management heavyweights including BlackRock and Fidelity, aims to bring faster trading and improved transparency to the $7.1 trillion U.S. money-market industry. By issuing tokenized versions of the funds, the banks say they can cut settlement times and operational risks that stem from traditional record-keeping systems.

This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz.