Bloomberg reports that Goldman Sachs analysts at JPMorgan Chase believe the new partnership between Goldman Sachs and BNY represents a “significant step forward” in tokenized money-market funds.
Goldman announced recently a joint-venture with BNY to introduce tokenized services for money market funds using the blockchain that Goldman developed.
BlackRock, BNY Investments Dreyfus Federated Hermes Fidelity Investments, and Goldman Sachs Asset Management are all planning to take part in the launch.
Teresa Ho, managing director of JPMorgan tells Bloomberg that the partnership may expand the uses for money-market funds.
The real takeaway is that money funds can be used for collateral. This goes beyond what we normally see as an asset class to manage cash. You can use money market shares instead of cash or Treasury bonds and still maintain interest. This shows the flexibility of money fund .”
Ho notes also that many other financial firms are seeing the benefits of tokenization as a result of regulatory clarification.
This is the case for banks, payment processors, asset managers and other financial institutions. It’s not surprising to continue seeing more development in terms of stablecoins becoming more integrated into the traditional financial system as well as tokenizing real-world assets .”
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