Add another $7 trillion to the pile of assets that can be tokenized.

Stablecoins are expected to revolutionize mediums of exchange (i.e. the USD) by tokenizing deposits. By having a representative of the US dollar, or whatever currency, the efficiencies of blockchain and crypto are instantly realized.

This market presently sits at around $250 billion. As of October 2024, the total demand deposits in the United States was over $5 billion.

All this leads into the forecast that stablecoin units will expand into the trillions.

We are watching what happens when Wall Street gets involved. The pace of financial innovation is astounding. The only factor slowing things down is the uncertainty in the regulatory environment, something that is being worked through in different parts of the world.

Now we get news that money market funds are being targeted.

Source

The Tokenization of Money Market Funds

Here we have another huge opportunity for tokenization.

How big are Money Market Funds (MMF)?

According to industry data, as of July 16, 2025, total money market fund assets in the U.S. were $7.07 trillion.

In other words, we are talking about a bit if capital. Again, when we look at the present stablecoin market, we are talking a small fraction of this. Even the entire market cap of crypto is under this, registering just shy of $4 trillion at this moment.

This led to a collaboration between Goldman Sachs and Bank of New York Mellon. The goal is to tokenize the ownership records of certain MMF.

Utilizing blockchain infrastructure developed by Goldman Sachs Digital Assets, the project enables clients to access and transact MMFs on BNY’s LiquidityDirect platform via mirrored tokens issued on GS DAP, Goldman’s proprietary blockchain. The firms stated:

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 LiquidityDirect and digital asset platforms.

Naturally, this is not a public blockchain but, rather, one utilized by approved banks. This is not really a problem since these assets are only available to institutions. Nothing here is available to the general public. We are dealing with separate infrastructure built by and for banks.

This is similar to the BUIDL token that Blackrock came out with. That is a stablecoin that is owned and utilized by financial institutions. It is constructed like many other publicly used stablecoins like USDC. The key difference is individuals cannot access or make payments with it.

Blackrock, Fidelity Investments, Federated Hermes, BNY Investments Dreyfus, and Goldman Sachs Asset Management are among the initial participants. The initiative permits institutional clients to subscribe and redeem MMF shares digitally, while BNY continues to manage official custody and settlement within existing compliance frameworks.

Source

The Tokenization of Real World Assets

A lot of discussion took place over the last few years regarding the tokenization of Real World Assets (RWA). This is something that could generate trillions of dollars in tokens.

While this could be an enormous move, we have to understand that a lot of this is not changing anything.

Tokenization alters the process, providing increase efficiency at a lower cost. However, like with the MMF, much of this is simply backend stuff. Wall Street moves around insane sums of money on a daily basis. Banks account for trillions of dollars worth of transactions.

Most of this occurs outside the view of the general public. Few care about the settlement process when swiping the ole Visa card. The same is true when getting our paycheck via direct deposit.

The system mechanisms are not relevant as long as the money is there.

It is a premise that extends throughout the financial world. For this reason, institutions are the ones dealing with this hodge podge of payment and settlement avenues. Tokenization offers them something different.

Wall Street is going all in on tokenization. It is a process that will not stop. A large portion of this will not affect the general public although alternative opportunities could open the door for newer players.

The most important takeaway is the fact that the process is accelerating. No sooner do we get one piece of legislation signed then another segment of the financial world is targeted.

It is a transformative time.

Posted Using INLEO