Goldman Sachs, BNY Collaboration to Support Increased Tokenization of Financial Assets

By Denny Jacob

Goldman Sachs and Bank of New York Mellon will collaborate to support increased tokenization of financial assets.

BNY, the world's largest custodian bank, will employ blockchain technology developed by investment bank Goldman Sachs to maintain a record of customers' ownership of select money market funds. The companies described the initiative as a significant step towards enhancing the utility and transferability of existing money market funds shares.

BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch.

"As the financial system transitions toward a more digital, real-time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance," said Laide Majiyagbe, global head of liquidity, financing and collateral at BNY.

The collaboration comes as traditional finance and digital assets like cryptocurrency meld closer together. PNC Financial Services Group and Coinbase Global on Tuesday announced a strategic partnership that will expand access to digital-asset solutions to PNC's banking clients and institutional investors, with PNC also providing select banking services to Coinbase, the largest cryptocurrency exchange in the U.S.

The development comes as the world of crypto moves closer to mainstream finance, a trend that has picked up under the Trump administration. President Trump last week signed the Genius Act into law, making it the first major legislation governing digital currency.

Write to Denny Jacob at denny.jacob@wsj.com