Tokenized money market funds emerge as Wall Street’s answer to stablecoins
Goldman Sachs and BNY Mellon’s tokenization push aims to keep money market funds competitive as the US accelerates stablecoin adoption, according to a JPMorgan strategist.
The tokenization of money market funds marks a significant step in preserving the appeal of “cash as an asset,” especially as the growing adoption of stablecoins threatens to erode the attractiveness of traditional fund offerings, according to JPMorgan strategist Teresa Ho.
Commenting on recent initiatives by Goldman Sachs and Bank of New York Mellon to tokenize shares of money market funds, Ho noted that such services will help maintain the competitiveness of these funds while unlocking new use cases, such as margin collateral.
This development is particularly timely given the recent passage of the US GENIUS Act, a comprehensive stablecoin bill expected to accelerate the usage of digital dollars by integrating the speed and predictability of blockchain technology into the traditional banking system.
