Goldman Sachs, BNY Mellon, and JPMorgan are leading the digitization of Wall Street with tokenized funds and crypto loans.
Goldman Sachs and BNY Mellon have launched a new phase of financial innovation that moves beyond proof of concept and fully into the institutional adoption of blockchain technology. The two firms have unveiled a joint initiative: the launch of tokenized money market funds (MMFs), recorded on a private blockchain developed by Goldman Sachs.
This solution will allow investors such as hedge funds, pension funds, and corporate treasuries to acquire shares using digital tokens, facilitating near-instant transactions without time restrictions, representing a significant operational leap forward compared to the limitations of the traditional system.
Meanwhile, JPMorgan is studying the possibility of offer Bitcoin-backed loans, a move that, if implemented, would set a precedent for the use of crypto assets as collateral in conventional banking.
BUY BITCOIN ON BIT2METokenization of funds: speed, liquidity and security
The tokenized funds launched by Goldman Sachs and BNY Mellon focus on low-risk, highly liquid, cash-like instruments, making them an ideal option for conservative but efficiency-hungry financial environments. Tokenization eliminates traditional operational frictions, such as limited trading hours, and allows for 24/7 settlements with near-zero delay.
The assets are recorded on a private blockchain, which not only offers greater transparency and legal certainty, but also opens the door to their use as collateral in lending transactions. The banks said the goal is to expand the functionality of money market assets and enhance their interoperability in institutional settings.
Unprecedented institutional support
The active participation of firms such as BlackRock, Fidelity Investments, and Federated Hermes reinforces the credibility and scale of this new paradigm focused on tokenization. These asset managers, along with the asset management divisions of Goldman Sachs and BNY Mellon, validate the operational utility of tokenized funds and contribute to the development of governance and interoperability protocols for the use of tokens as fully regulated financial instruments.
The highlight of this collaboration is that the infrastructure created is not intended to compete with traditional finance, but rather to integrate it with emerging technologies to generate new channels of access, liquidity, and asset mobility.
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GENIUS: Legal catalyst for exploring digital assets
The regulatory landscape surrounding cryptocurrencies has also evolved. The recent approval of the GENIUS Law (Guidelines for Enabling New Infrastructure Using Stablecoins) In the United States, a legal framework has been established for the use of stablecoins and digital assets backed by fiat currency. This legislation provides legal certainty and encourages technological adoption by traditional banking institutions.
The law allows tokenized assets, such as money market funds, to be legally recognized as valid financial instruments, removing barriers to their integration into institutional platforms. Goldman Sachs and BNY Mellon, protected by this new framework, are accelerating their digital transition with long-term goals that include global interoperability and tokenized banking services.
TRADE WITH STABLECOINS HEREJPMorgan takes steps toward lending with Bitcoin as collateral
In parallel, JPMorgan is exploring the feasibility of offering Bitcoin-backed loans. While the organization already allows the use of Bitcoin ETFs as collateral in certain transactions, offering loans backed directly by crypto assets would be a more robust step toward mainstream adoption.
Historically, JPMorgan CEO Jamie Dimon has maintained a critical stance toward Bitcoin. However, in recent months his rhetoric has changed, and the institution has increased its exposure to digital assets in regulated financial products. This evolution responds not only to market pressures, but also to the Growing institutional demand for financial solutions that integrate crypto assets in a safe and regulated manner.
According to the Financial Times, the new initiative JPMorgan's venture into the cryptocurrency world is still in its exploratory phase and may not be available until 2026. However, these plans have already generated interest among corporate managers looking to leverage digital assets without leaving the traditional banking environment.
The new era of digital finance on Wall Street
As we can see, Wall Street is undergoing a transformation that goes beyond crypto speculation. The decisions of Goldman Sachs, BNY Mellon, and JPMorgan show a clear strategy toward integrate digital assets into an existing financial architecture, validated by regulation and open to new forms of liquidity, collateral and trading.
The tokenization of funds and the use of Bitcoin as collateral for loans are not presented as experiments, but rather as calculated steps toward a more agile, transparent, and resilient financial model. This convergence between traditional banking and decentralized technologies could redefine the institutional landscape in the coming years and offer new avenues for growth for sophisticated managers, corporations, and investors.
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