Goldman Sachs and BNY are collaborating to launch digital tokens that mirror shares of money market funds. Investors can now buy and sell money market fund shares on BNY’s LiquidityDirect platform, with a digital record of those shares created on Goldman’s blockchain system, the two financial giants said on Wednesday.

The move marks another step in Wall Street’s push towards bringing blockchain technology into modern-day finance. BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers’ ownership of select Money Market Funds (MMFs), in a significant step towards enhancing the utility and transferability of existing MMF shares. According to Goldman Sachs, BlackRock, BNY Investments, Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial digital tokens launch.

Goldman Sachs, BNY Comment on New Digital Token Partnership

“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. “Mirrored tokenization of MMF shares is a first step in this transition, and we are proud to be at the forefront of this first-of-its-kind initiative. Our collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies – empowering clients to navigate this transformation with confidence.”

Also Read: TRON Close To New Peak: Can It Follow Bitcoin, XRP, & BNB?

“Using tokens representing the value of shares of Money Market Funds on GS DAP® would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future,” added Mathew McDermott, Global Head of Digital Assets at Goldman Sachs. “We are excited about this strategic collaboration with BNY in our journey towards the longer-term vision for GS DAP® and as we continue to lead and innovate in the digital assets space.”

Furthermore, the growing interest in tokenization coincides with the renewed optimism in the crypto industry. Over the last few months, crypto has and gained momentum, especially after the Genius Act was passed earlier this month. Bitcoin (BTC) is trading at near-ATH levels of $118,000, while Ethereum is up over 50% in the last 30 days to $3,600.