Goldman Sachs And BNY Partner For Tokenization, How Ripple And XRP Tie With The New Collab

• Goldman Sachs and BNY unveiled a partnership for the tokenization of money market funds.
• With the recent strategic partnership of Ripple with BNY and alleged links to Goldman Sachs, the crypto community suspects something big is brewing within the XRPL ecosystem.

Goldman Sachs and Bank of New York (BNY) Mellon recently unveiled a partnership to expand their services and product offerings in the digital assets space. The collaboration will allow the tokenization of money market funds for institutional investors.

The New Goldman Sachs and BNY Partnership

According to Reuters, the partnership will allow institutional clients to trade money market funds via BNY’s LiquidityDirect platform. These instruments are mutual funds that invest in short-term and liquid debt instruments. They provide high liquidity and low risk with stable valuations. Meanwhile, Goldman Sachs will handle the recording and tracking of the shares on the blockchain.

The report indicated that the partners will tap into Goldman Sachs’ private blockchain. Last year, the banking giant unveiled the GS DAP private blockchain, which was developed in-house by its Digital Asset division.

ADVERTISEMENTThe new system could benefit institutional customers by giving them access to faster transactions. Additionally, clients could utilize the platform to secure loans using their digital assets as collateral.

Other Participants

BlackRock, Fidelity Investments, and Federated Hermes are reportedly participating in the project. In this case, it can potentially advance the tokenization of around $7.1 trillion in funds within the money market industry.

The move comes as a stamp of confidence by institutions within the traditional finance (TradFi) sector to the burgeoning blockchain industry following US President Donald Trump’s signing of the GENIUS Act. Other legislations offering greater clarity, protection, and support to digital assets are also underway, which could further bolster innovations and the adoption of distributed ledger technologies.

ADVERTISEMENT## How Ripple Surprisingly Ties with the New Partnership

Ripple recently announced a partnership with BNY to custody its Ripple USD (RLUSD) reserves. The blockchain solutions provider leverages the financial institution’s banking expertise to facilitate the operations of the stablecoin. Moreover, BNY aims to serve as a bridge for the interoperability of the RLUSD with other stablecoins and traditional assets.

On the other hand, XRP Army members SMQKE, Pumpius, and Chad Steingraber recently pointed to links connecting Ripple with Goldman Sachs. SMQKE even provided a copy of an unverified document confirming that the multi-trillion-dollar bank was one of the blockchain firm’s co-investors and major market partners. The same file also names Google, Banco Santander SA, Bank of America, Axis Bank, and Standard Chartered as Ripple’s backers.

Source: SMQKE via XWhether the claim is valid or not, it’s unclear how Ripple is relevant in the partnership of the two banking titans since they use Goldman Sachs’ native private blockchain. Regardless, the matter is worth exploring further. It could signal something big brewing within the XRP Ledger (XRPL) ecosystem, particularly if the partners plan to expand their reach in cross-border payments.

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