Wall Street giants Goldman Sachs and BNY Mellon have partnered to launch tokenized versions of money market funds (MMFs), primarily backed by U.S. Treasury securities, aimed at institutional investors.

The tokenized funds will be accessible through BNY Mellon’s LiquidityDirect platform, with ownership records and transactions recorded on Goldman Sachs’ blockchain infrastructure, known as the Digital Asset Platform (DAP).

This opens the door for the firms’ institutional clients to trade shares of money market funds 24/7 in a programmable and interoperable digital form, supporting automated treasury functions like real-time liquidity management and portfolio rebalancing via smart contracts.

This story is an excerpt from the Unchained Daily newsletter.

Early participants include major asset managers such as BlackRock, Fidelity Investments, Federated Hermes, and Goldman Sachs itself.

The market for tokenized U.S. Treasuries has been growing rapidly, increasing nearly 500% in the year to around $6.75 billion as of this month.