Giant Wall Street Goldman Sachs and BNY Mellon are preparing to offer institutional investors in accessing tokenized funding market funds, which can unlock real-time settlement, 24/7 market access and more efficiency in capital markets.
BNY Mellon’s clients, the world’s largest custodian bank, are about to invest in money market funds whose ownership has been recorded directly in the Goldman Sachs private blockchain, According to In a press release of Wednesday.
“As a financial system shifting towards a more digital, real-time architecture, BNY is dedicated to enabling scalable and secure solutions that shape the future of finance,” said Laide Majiyagbe, a global leader of liquidity, financing and collateral in BNY Mellon.
The initiative included participation from industry heavyweights such as Blackrock, Fidelity Investments, and Federated Hermes, along with Goldman and BNY’s asset management arms, each release.
Related: What is Sbuidl and how does Treasurys work like Crypto?
Prohibit stables that bring interest to spur growth in tokenized funds
The development came to the heel of the newly signed Genius Act, establishing a regulatory framework for Stablecoins in the US. The bill, passed last week With more than 300 votes at homeStablecoins are prohibited from bringing interest.
In contrast, Tokenized Money Market Funds Offer a yield, provide fence, pension and corporation funds with a new tool to manage idle cash with a bit of volatility.
In a report last month, Moody’s revealed that tokenized short -term funds Growing up to $ 5.7 billion in possessions since 2021 amid growing interest from traditional ownership managers, insurers, and brokers seeking to offer clients accessing between Fiat and digital markets.
Usually supported by the US Treasurys or other low-risk instruments, these funds work such as traditional money market funds but the leverage blockchain to issue fractional shares and enable real-time settlement.
Related: Centrifuge brings S&P 500 onchain to Tokenized Fund Launch
The race to bring capital markets to the blockchain is in
Earlier this month, Robinhood CEO Vlad Tenev Detailed plans for “Robinhood’s chain,” a compatible with Ethereum Layer 2 in arbitrator orbit. Blockchain will allow users to exchange tokenized derivatives of stocks directly to blockchain, moving asset trade out of traditional exchange time.
In a July 4 report, Galaxy Digital states that Robinhood’s tokenization transfer removes properties from traditional market channels and brings them onchain, directly Challenges concentrated liquidity and activity That provides major Trade exchanges like NYSE on their side.
“It directly challenges the in -depth concentration of liquidity and activity that provides major exchanges of Tradfi (for example, NYSE) to their competitive advantage,” wrote Galaxy Digital.
Magazine: Is Robinhood’s tokenized stock really going to take the world? Advantages and weaknesses
