In a groundbreaking move for institutional finance, Goldman Sachs and BNY Mellon have officially launched tokenized money market funds, pushing traditional financial instruments into the blockchain era. The initiative, developed in collaboration with blockchain infrastructure provider Canoe and custodial platform Copper, allows qualified clients to access money market fund exposure via blockchain tokens—combining the stability of short-term treasuries with the speed and transparency of decentralized finance.
The project marks one of the most high-profile attempts to tokenize traditional assets by legacy financial institutions. According to the official announcement, the pilot is already live and available to select institutional clients, signaling a long-term shift toward tokenized asset infrastructure.
Goldman Sachs and BNY Target Real-World Asset Tokenization
The tokenized money product offers blockchain-based representations of traditional money market fund shares, such as those composed of T-bills and short-term government securities. While the underlying assets remain regulated and off-chain, token holders benefit from near-instant settlement, improved liquidity, and compatibility with blockchain-native ecosystems.
Money market fund tokens. Source: Copper.co
Clients access the product via Copper’s ClearLoop platform, enabling custody and instant settlement between multiple parties. BNY Mellon plays the role of fund administrator, while Goldman Sachs provides fund structuring and liquidity support. As noted by Copper, token holders can access daily yields and off-chain audits without giving up on-chain interoperability.
Why Tokenized Money Funds Matter Now
The timing of this launch is no coincidence. In 2024–2025, tokenization has re-emerged as one of the hottest narratives in crypto. BlackRock CEO Larry Fink previously called tokenization “the next evolution in markets,” and firms like Franklin Templeton and WisdomTree have already issued their own tokenized Treasuries.
However, the entrance of Goldman Sachs and BNY Mellon, two titans of Wall Street, brings a new level of credibility and operational robustness. According to the BNY press release, the pilot aims to test interoperability between custodians, improve back-office reconciliation, and lay the foundation for real-time fund settlement.
The funds themselves are not open to retail investors, but the structure opens the door to broader institutional adoption of blockchain-based financial infrastructure.
Growing Momentum for On-Chain Finance
The tokenized money movement is gaining rapid traction. Over $1.5 billion worth of real-world assets (RWAs) are already deployed across Ethereum and other blockchains, with institutional players increasingly viewing the space as a credible alternative to legacy rails.
Earlier this year, JPMorgan issued its first tokenized collateral through its Onyx blockchain, while asset manager Securitize facilitated on-chain bonds for multiple U.S. firms. Goldman Sachs’ entry now adds another layer of legitimacy, especially as the firm has previously launched tokenized bonds in partnership with the European Investment Bank.
This pilot also aligns with the emerging global interest in programmable money, particularly among governments exploring central bank digital currencies (CBDCs) and stablecoin regulations. Tokenized money market funds serve as a bridge between today’s regulated finance and tomorrow’s decentralized platforms—offering both compliance and composability.
Final Thoughts: Is Tokenized Money the Future of Asset Management?
The joint effort by Goldman Sachs and BNY Mellon underscores a growing belief that tokenized money will play a pivotal role in the future of capital markets. By bringing short-term yield-bearing instruments onto blockchains, institutions unlock a new era of efficiency, transparency, and interoperability.
For now, access remains limited to large clients and funds, but the infrastructure is being built with scalability in mind. As token standards mature and regulatory frameworks become clearer, tokenized money products could rapidly expand into broader segments—including wealth management and corporate treasuries.In short, what we’re seeing isn’t just a new product launch—it’s a strategic shift in how money moves. The future of finance may no longer be just digital—it may be fully on-chain.
