Sidley Advises Goldman Sachs in Its Launch of Tokenized Money Market Funds Solution

Sidley represented Goldman Sachs & Co. LLC in a collaborative initiative between the Goldman Sachs Group, Inc. and The Bank of New York Mellon Corporation (“BNY”) by which BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers’ ownership of select Money Market Funds (MMFs), in a significant step towards enhancing the utility and transferability of existing MMF shares.

This combined solution marks the first time in the U.S. that fund managers have enabled subscription for shares of their MMFs via BNY’s LiquidityDirectSM and Digital Asset platforms, the corresponding value of which will be represented through mirrored record tokenization utilizing GS DAP®. GS DAP® is an award-winning technology platform developed by Goldman Sachs Digital Assets, which leverages solutions developed by Digital Asset.

This collaboration between Goldman Sachs Digital Assets and BNY LiquidityDirect^SM to support increased tokenization of financial assets is designed to meet the evolving needs of sophisticated institutional investors in digital capital markets.

The deal team was led by Andrew Blake (Securities Enforcement and Regulatory), Lilya Tessler (FinTech and Blockchain), and Kenny Terrero (Capital Markets), and included Andrew Sioson, (Securities Enforcement and Regulatory), Douglas McCormack, and Bernie Zamichow (Investment Funds), and Teresa Wilton Harmon (Global Finance).