Goldman, BNY team up to launch tokens tied to money market funds
Investors can now buy and sell money market fund shares on BNY's LiquidityDirect platform, with a digital record of those shares created on Goldman's blockchain system, the two financial giants said on Wednesday.
The move marks an early step toward modernizing the infrastructure that underpins most of the financial ecosystem. If adopted broadly, it could make it easier and faster for institutional investors to use these assets as collateral and reduce trade settlement times.
BlackRock (BLK.N), opens new tab, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments and Goldman Sachs Asset Management are among the companies participating in the initial rollout.
Though a subject of debate, tokenization's potential to drastically reshape the investing landscape has drawn strong interest.
In January, Apollo (APO.N), opens new tabteamed up, opens new tab with Securitize to launch a feeder fund that would channel capital from crypto-native investors into its global credit fund.
The moves coincide with surging optimism in the crypto industry, which has rallied in recent months and gained fresh momentum after the Genius Act passed earlier this month.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
8 minutes ago
- The Independent
Trump administration canceled a $4.9B loan guarantee for a line to deliver green power
The Trump administration on Wednesday canceled a $4.9 billion federal loan guarantee for a new high-voltage transmission line for delivering solar and wind-generated electricity from the Midwest to the eastern U.S., but the company indicated that project would go forward anyway. The U.S. Department of Energy declared that it is "not critical for the federal government to have a role' in the first phase of Chicago-based Invenergy's planned Grain Belt Express. The department also questioned whether the $11 billion project could meet the financial conditions required for a loan guarantee. President Donald Trump has repeatedly derided wind and solar energy as unreliable and opposed efforts to combat climate change by moving away from fossil fuels. The Department of Energy also said Wednesday that the conditional commitment to Invenergy in November was among billions of dollars' worth of commitments "rushed out the doors" by former President Joe Biden 's administration after Biden lost the election. Two prominent Missouri Republicans, U.S. Sen. Josh Hawley and state Attorney General Andrew Bailey, have been vocal critics of the project, describing it as a threat to farmland and landowners' property rights. Hawley said on July 10 that he had secured a pledge from U.S. Energy Secretary Chris Wright to cancel the loan guarantee in a conversation with him and Trump. 'To ensure more responsible stewardship of taxpayer resources, DOE has terminated its conditional commitment,' the agency said in a statement. A federal loan guarantee generally makes borrowing money less costly. A statement issued for the Grain Belt Express expressed disappointment, calling the new transmission line 'America's largest power pipeline.' Construction has been set to start next year. The statement added: 'A privately financed Grain Belt Express transmission superhighway will advance President Trump's agenda of American energy and technology dominance while delivering billions of dollars in energy cost savings, strengthening grid reliability and resiliency, and creating thousands of American jobs.' Invenergy has said its project would create 4,000 jobs and new efficiencies in delivering power, and that it would save consumers $52 billion over 15 years. The line would deliver electricity from western Kansas about 800 miles (1,287 kilometers), across Missouri and Illinois and into Indiana, connecting there to the power grid for the eastern U.S. It could deliver up to 5,000 megawatts of electricity. "When electricity demand and consumer power bills are soaring, it's hard to imagine a more backward move,' said Bob Keefe, executive director of E2, a nonpartisan, Washington-based group supporting renewable energy. The decision to cancel the loan guarantee came the same day Trump unveiled a plan for U.S. dominance in artificial intelligence that includes speeding up the permitting of new data centers and factories that will boost the demand for electricity. 'This gross mismanagement of our country's energy needs will increase power bills for hundreds of millions of people while making the electricity grid less reliable,' said Laurie Williams, director of a campaign against fossil fuels for the Sierra Club environmental group. Jigar Shah, who headed the Department of Energy office handling loan guarantees under Biden, said that if an applicant meets the requirements of a conditional commitment, the department is obligated to follow through. 'This decision is illegal,' he said in a post on the LinkedIn social media platform. Hawley and Bailey have called the Grain Belt Express a 'scam." Critics object to what Hawley labels an "elitist land grab,' the company's ability to use lawsuits against individual landowners along the line's route to compel them to sell their property. Online court records show that the company filed dozens of such lawsuits in Missouri circuit courts in recent years. The Missouri Farm Bureau's president posted on the social platform X Wednesday that the project threatened to 'sacrifice rural America in the name of progress.' 'We've won a major battle in the war for Missouri's private property rights and farmers," Bailey said. 'At our urging, the DOE saw this boondoggle for what it was.' Bailey acknowledged in his comments that the project still could go forward with private funding and no loan guarantee but added, 'If Invenergy still intends to force this project on unwilling landowners, we will continue to fight every step of the way.'
Reuters
8 minutes ago
- Reuters
Packaging Corp forecasts profit below estimates on export, freight pressures
July 23 (Reuters) - Packaging Corp of America (PKG.N), opens new tab forecast third-quarter profit below Wall Street estimates on Wednesday, hurt by rising freight costs and weak export containerboard sales amid global trade uncertainty. The Lake Forest, Illinois-based company specializes in delivering paper and packaging products catering to a range of sectors, including the food and beverage industry, paper manufacturing, and retail commerce. While demand for packaging goods is recovering from a post-pandemic slowdown, sticky inflation and cautious consumer sentiment have pressured sales, especially while its customers navigate trade uncertainties due to tariffs. CEO Mark Kowlzan said pricing in both packaging and paper will remain flat in the third quarter, while freight costs will rise due to higher rail rates. The company expects third-quarter profit of $2.80 per share, compared with analysts' average estimate of $2.92 per share, according to LSEG data. Packaging Corp's net sales rose slightly to $2.17 billion in the quarter ended June 30, from $2.07 billion a year earlier. Analysts on average estimated $2.19 billion, according to data compiled by LSEG. Its adjusted profit for the second quarter came in at $2.48 per share, compared with estimates of $2.44.
Reuters
8 minutes ago
- Reuters
Publisher McGraw Hill raises $415 million in US IPO
July 23 (Reuters) - U.S. publisher McGraw Hill (MH.N), opens new tab, backed by investment firm Platinum Equity, said on Wednesday it had raised $414.63 million in its initial public offering in the United States. The company sold 24,390,000 shares, priced at $17 each, below its marketed range of $19 to $22. The offering valued McGraw at $3.25 billion. The IPO market is gaining momentum on the back of a rally in equities and some stellar debuts in recent months. Private equity sponsors, who have been sitting on a massive backlog of portfolio companies waiting to go public, are looking to capitalize on this window. McGraw Hill will debut on the New York Stock Exchange on Thursday, nearly 13 years after it was taken private by Apollo (APO.N), opens new tab. The private-equity giant had also attempted to re-list the company in 2015. It was then sold to Platinum Equity, which will continue to hold 84.6% of McGraw's total outstanding shares after the offering. McGraw Hill is one of the most recognized names in the publishing industry, known for its textbooks and other learning resources, with 82% of U.S. higher education institutions using its products, according to company filings. The company revealed in its IPO filing that revenue rose 7% to over $2 billion for the fiscal year ended March 31. It aims to trade on the NYSE under the ticker symbol "MH".
