Goldman Sachs and BNY Mellon are set to introduce tokenized money market funds aimed at institutional investors, promising 24/7 settlement and blockchain-based ownership tracking. The initiative is designed to enhance efficiencies in capital markets, allowing clients to invest in funds whose ownership is recorded directly on Goldman Sachs’ private blockchain. Laide Majiyagbe from BNY Mellon emphasized the bank's commitment to digital finance solutions. The project also involves major players like BlackRock and Fidelity Investments. This move follows the recent enactment of the GENIUS Act, which establishes a regulatory framework for stablecoins in the U.S. The new tokenized funds, typically backed by low-risk instruments, offer yield and represent a new approach for hedge funds and corporations to manage idle cash. This development signifies a shift towards integrating traditional finance with digital asset markets, as evidenced by Robinhood's recent initiatives surrounding tokenized derivatives.

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