{"id":399760,"date":"2025-07-26T04:45:29","date_gmt":"2025-07-25T23:15:29","guid":{"rendered":"https:\/\/dripp.zone\/news\/tokenization-could-boost-utility-of-money-market-funds-crypto-news\/"},"modified":"2025-07-26T05:46:01","modified_gmt":"2025-07-26T00:16:01","slug":"tokenization-could-boost-utility-of-money-market-funds-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/tokenization-could-boost-utility-of-money-market-funds-crypto-news\/","title":{"rendered":"Tokenization Could Boost Utility of Money Market Funds – Crypto News"},"content":{"rendered":"

<\/p>\n

The tokenization of shares of money market funds could help keep money market funds competitive with stablecoins while also creating new uses for them, according to <\/span>JPMorgan Chase & Co.<\/span><\/a> strategists.<\/span><\/p>\n

\n

The strategists said this in a note to clients, commenting on a <\/span>partnership<\/span><\/a> between <\/span>Goldman Sachs<\/span><\/a> and the <\/span>BNY<\/span><\/a> to collaborate on that tokenization, Bloomberg <\/span>reported<\/span><\/a> Friday (July 25).<\/span><\/p>\n

\u201cThe true takeaway from this is beyond the typical way we see money funds being used as a cash management asset class \u2014 they can now use it as collateral,\u201d said Teresa Ho at JPMorgan, per the report. \u201cInstead of posting cash or posting Treasuries, you can post money market shares and not lose interest along the way. It speaks to the versatility of money funds.\u201d<\/span><\/p>\n

Goldman Sachs and BNY announced their collaboration Wednesday (July 23), saying their <\/span>tokenization<\/span><\/a> project will see BNY use Goldman Sachs\u2019 blockchain technology to maintain a record of customers\u2019 ownership of select money market funds.<\/span><\/p>\n

The companies said in a Wednesday press release that the project is \u201ca significant step towards enhancing the utility and transferability of existing [money market fund] shares.\u201d<\/span><\/p>\n

Laide Majiyagbe<\/span><\/a>, global head of liquidity, financing and collateral at BNY, said in the release that the companies\u2019 planned \u201cmirrored tokenization of [money market fund] shares\u201d is a first step in the financial system\u2019s transition toward \u201ca more digital, real-time architecture.\u201d<\/span><\/p>\n

Mathew McDermott<\/span><\/a>, global head of digital assets at Goldman Sachs, said in the release that the project \u201cwould enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future.\u201d<\/span><\/p>\n

PYMNTS reported Wednesday that the BNY-Goldman Sachs deal could be a watershed moment for enterprise back-office leaders as it highlights changes that, for <\/span>corporate treasurers<\/span><\/a> managing billions of dollars in liquidity across multinational corporations, could amount to a redesign of the capital stack.<\/span><\/p>\n

Tokenized money market funds can be exchanged instantly, enabling treasurers to manage liquidity in real time; unlock use cases like real-time collateral swaps or intraday repo; and be paired with tokenized cash, Treasuries and commercial paper, allowing treasurers to compose portfolios that settle in seconds, automate allocations via smart contracts and rebalance exposure with unprecedented agility.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The tokenization of shares of money market funds could help keep money market funds competitive with stablecoins while also creating new uses for them, according to JPMorgan Chase & Co. strategists. The strategists said this in a note to clients, commenting on a partnership between Goldman Sachs and the BNY to collaborate on that tokenization, […]<\/p>\n","protected":false},"author":2,"featured_media":399770,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-399760","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/399760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=399760"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/399760\/revisions"}],"predecessor-version":[{"id":399771,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/399760\/revisions\/399771"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/399770"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=399760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=399760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=399760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}