"Fund Tokenization" is trending overseas, what has Wall Street seen?

The global fund tokenization market is experiencing explosive growth, with Wall Street giants entering this emerging field.

According to the latest report from Goldman Sachs, the asset management scale of tokenized assets reached USD 23 billion in the first half of this year, a staggering increase of 260% compared to January. The total market value of the tokenized government bond market has even reached USD 7.5 billion.

Goldman Sachs predicts that by 2030, tokenized funds will account for 1% of the global asset management scale, exceeding USD 60 billion. This includes not only traditional money market funds but also the rapid follow-up of tokenization in alternative assets such as private equity.

Goldman Sachs believes that this astonishing growth reflects a significant increase in institutional investors' recognition of the application of blockchain technology in traditional finance.

The report points out that Goldman Sachs recently collaborated with Bank of NY Mellon to launch the first tokenized money market fund solution in the United States, marking the official landing of this innovative financial tool in the U.S. market. Notable institutions such as BlackRock, Fidelity Investments, and Goldman Sachs Asset Management participated in the initial release.

Goldman Sachs believes that the rapid development of global fund tokenization benefits from an increasingly improved global regulatory environment and the growing demand from institutional investors for enhanced liquidity and reduced costs.

Money Market Funds as Pioneers of Tokenization

Tokenized money market funds are becoming the vanguard of this wave of innovation. According to Goldman Sachs' report, there are currently over 335 types of tokenized physical asset products operating on-chain, with money market funds occupying an important position.

BlackRock's BUIDL fund, launched in collaboration with Securitize, has surpassed USD 2.9 billion in asset management scale, becoming the largest tokenized money market fund in the world. Other significant participants include:

• Franklin Templeton's on-chain U.S. government money fund has been trading on-chain since 2021, reaching a scale of USD 512 million by early 2025.
• Fidelity recently applied to launch a dedicated tokenized money market fund, while Ondo Finance's OUSG product has a scale of approximately USD 253 million.
• WisdomTree's government money market digital fund is expected to reach a scale of approximately USD 130 million by mid-2025.
• The tokenized government bond money market fund VBILL launched by U.S. asset management company VanEck can be used across multiple blockchain networks.
• State Street announced that it is developing a tokenization project for money market funds to be used as collateral, which will eliminate the need to liquidate money market fund positions to meet margin requirements.

Goldman Sachs analysts believe that the commercial participation of these heavyweight institutions indicates that the market's demand for blockchain-native liquidity is growing.

Private Equity and Other Alternative Assets Following Suit

Tokenization of private equity and alternative assets is also gaining attention.

According to Goldman Sachs' forecast, the tokenized fund market will expand significantly from USD 40 billion in 2023 to USD 317 billion in 2028, with growth primarily concentrated in private equity, private debt, real estate, and other alternative strategies. According to a survey by PwC, 54% of institutional investors list private equity as their preferred tokenized alternative investment.

Tokenized private credit strategies, such as Apollo's diversified credit fund, provide qualified institutions with partial investment opportunities within a compliant framework.

Investors can obtain ACRED tokens, representing their on-chain equity in Apollo's traditional credit fund. One of the key features is the ability to mint derivative tokens sACRED, which convert investments into flexible collateral for borrowing stablecoins on decentralized finance platforms.

It is estimated that tokenized alternative investments could drive up to $400 billion in distribution opportunities, simplifying, automating, and streamlining the tokenized investment cycle, including automated capital calls, portfolio customization, and access to these typically illiquid instruments.

Milestone Moment for U.S. Tokenized Money Market Funds

The collaboration between Goldman Sachs and Bank of NY Mellon marks an important milestone for U.S. tokenized money market funds.

This solution allows U.S. fund management companies to subscribe to money market fund shares through Bank of NY Mellon's LiquidityDirect platform, utilizing Goldman Sachs' blockchain-based GS DAP platform for the first time.

Bank of NY Mellon's LiquidityDirect platform acts as the tokenized manager, facilitating the subscription and redemption of money market funds as well as the on-chain minting and burning of tokens. The tokens represent a mirrored record of off-chain securities rights and may directly represent the securities rights themselves in future phases.

Shaun Cullinan, Goldman Sachs' liquidity solutions partner, stated, the biggest initial opportunity lies in collateral management. Traditional mutual funds face limitations in ownership record-keeping, making it ineffective to serve as collateral within the ecosystem. The future potential of tokenized funds can alleviate these frictions and unlock value in the asset class.

Amar Amlani, head of digital assets for Goldman Sachs Americas, pointed out that periods of market volatility are often accompanied by significant fluctuations in margin calls, which typically need to be met in cash. This often leads to redemptions from money market funds, exacerbating pressure on the underlying assets. Mobilizing money market funds on a T+0 basis and expanding their use in collateral liquidity is expected to bring benefits from a financial stability perspective.

Regulatory Environment Gradually Clarifying

Goldman Sachs stated that global regulators generally take a positive attitude toward fund tokenization, creating favorable conditions for market development.

In April 2025, the Hong Kong Securities and Futures Commission approved the world's first tokenized money market ETF, further broadening potential liquidity benefits and demonstrating strong interest in interoperable token formats.

The fund tokenization implementation blueprint released by the UK in 2023 provides a phased approach aimed at enhancing the efficiency and transparency of investment markets.

The UK's Financial Conduct Authority has consistently supported industry efforts and recognized the potential of fund tokenization. The agency plans to consult on guidance in the third quarter of 2025 to support the blueprint tokenization model In the United States, although the Securities and Exchange Commission (SEC) has not yet released a regulatory framework specifically for tokenized funds, regulatory signals are becoming increasingly positive.

SEC Commissioner Hester Peirce has publicly advocated for tokenization, pointing out that it can enhance capital formation and achieve more efficient use of collateral.

Major industry participants in the United States have launched tokenized fund products, demonstrating the commercial momentum in this field.

Risk Warning and Disclaimer

The market carries risks, and investment should be approached with caution. This article does not constitute personal investment advice and does not take into account the individual user's specific investment objectives, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investment based on this is at one's own risk