Brind.

Major Banks Partner to Tokenize Money Market Funds and Treasuries

Steady: 0 in the last 7 days Updated oct 14

The latest in this situation

  1. BlackRock and Citadel Securities are testing tokenized U.S. Treasuries for financing purposes.
  2. Ondo uses BlackRock strategies for its portfolio tokens, and Lisa O'Connor is noted as an expert at BlackRock.

How it started

2 reports, 2 independent, last reported Jul 24. The briefing below covers this first event.

AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 2 outlets

Goldman Sachs and The Bank of New York Mellon partnered to support the tokenization of financial assets and money market funds using blockchain technology. This collaboration allows institutional investors to trade these assets 24/7. BlackRock is also participating in the launch, and currently, there are about $6.75 billion in tokenized US Treasuries, bonds, and cash equivalents.

From Investopedia, Yahoo Finance

Why it matters

Some supportBrind's analysis of the reports

Financial firms are digitizing traditional assets like money market funds and US Treasuries. This shift aims to increase raw efficiency, potentially reducing the time and costs associated with transferring interest-bearing cash instruments. Proponents note that these tokenized assets could serve as collateral within the crypto world.

From Yahoo Finance

Who's involved

  • Goldman SachsPartnered with The Bank of New York Mellon to tokenize financial assets.
  • The Bank of New York MellonPartnered with Goldman Sachs to tokenize money market funds and manage records.
  • BlackRockParticipating in the launch of tokenized products, including BUIDL.

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • Goldman SachsSpeculative

    The firm might see reduced costs for transferring interest-bearing cash instruments through new digital platforms.

  • The bank might see reduced costs for transferring interest-bearing cash instruments through new digital platforms.

  • BlackRockSpeculative

    Cryptocurrency exchanges could potentially use shares of tokenized money market funds as collateral for loans.

Possible ripples

Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.

How it developed

Newest first. Tap a step to see who reported it.
  1. BlackRock and Citadel Securities are testing tokenized U.S. Treasuries for financing purposes.Sub-event
  2. Major financial institutions are partnering to develop and participate in tokenized asset markets and money market funds.Sub-event
  3. Ripple, JPMorgan Chase, and Santander Group joined a taskforce focused on developing digital markets and tokenized assets.Sub-event
  4. Ark Invest and BlackRock are partnering with tokenization specialist Securitize, with their assets being tracked in options markets.Sub-event
  5. Major financial institutions partnered to create a tokenized real estate fund using a London digital asset platform and Bermuda fund administration.Sub-event
  6. Financial firms like BlackRock, Kraken, and Robinhood are expanding into tokenized assets and digital money market strategies across Europe.Sub-event
  7. Major banks and asset managers are launching tokenized Treasury products and money market funds.1 source

Keep exploring

The entities involved

Related events

Coverage

Newest first; wire copies grouped
  • InvestopediaGoldman Sachs, BNY Mellon Step into Tokenized Money Market Funds The nation's oldest bank and a big Wall Street firm are wading into tokenization, joining a growing number of money managers experimen
  • Yahoo FinanceAlexander Hamilton's bank, Goldman Sachs embrace digital tokens to trade money markets 24/7 Goldman Sachs (GS) and the Bank of New York Mellon (BK) are teaming up to make it easier for institutional