Goldman Sachs, BNY Mellon to offer tokenized money market funds for clients

Key Points

1. Goldman Sachs and BNY Mellon will offer tokenized money market funds with 24/7 settlement and blockchain-based ownership tracking for institutional clients.

2. The initiative involves participation from major financial institutions like BlackRock, Fidelity Investments, and Federated Hermes.

3. The GENIUS Act, recently passed, bans interest-bearing stablecoins, potentially driving growth in tokenized money market funds which offer yield.

4. Tokenized short-term funds have grown to $5.7 billion in assets since 2021, reflecting increasing interest in bridging fiat and digital markets.

5. Robinhood is developing 'Robinhood Chain,' an Ethereum-compatible layer 2 on Arbitrum Orbit, aiming to move asset trading outside traditional exchange hours.