tl;dr
JPMorgan Chase analysts regard Goldman Sachs’ new partnership with BNY to launch tokenized money market fund services on Goldman’s blockchain as a major advancement. The initiative involves key firms like BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs A...
Analysts at JPMorgan Chase view Goldman Sachs’ new partnership with BNY as a “significant leap forward” for tokenized money market funds. Goldman Sachs and BNY have jointly announced a venture to launch tokenized money market fund services using a blockchain developed by Goldman.
Key players including BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management are set to participate in this innovative service launch.
Teresa Ho, managing director at JPMorgan, explains that the partnership could broaden the practical applications of money market funds. Rather than just serving as a cash management asset, money market shares can now be used as collateral without sacrificing accrued interest, enhancing their versatility.
Ho further comments that many financial firms recognize the advantages of tokenization, especially as regulatory clarity improves. This trend is noticeable across banks, asset managers, and payment processors, with expectations of more developments integrating stablecoins and tokenized real-world assets into the traditional financial system.