Banking giant Goldman Sachs is looking to take over smaller financial institutions, with several firms already on its radar, the New York Post reports.

In an op-ed for NYP, finance journalist Charles Gasparino says that a CEO of a financial services giant revealed that, because of more lax regulations, banks are on the prowl for acquisitions.

Says the unnamed source,

“Because of the Fed’s supervisory relaxation, big bank deals are going to happen… Everyone is talking.”

Gasparino says that one possible takeover target for Goldman is State Street, the Boston-based financial services giant serving institutional investors with a market valuation of about $30 billion. A State Street spokesperson had no comment on the matter, however.

BNY, formerly known as Bank of New York Mellon, is reportedly another target for Goldman.

Goldman and BNY recently announced a joint venture to launch tokenized money market fund services using a blockchain developed by Goldman. Gasparino says the venture is the precursor to a merger later on.

According to “people close to Goldman,” a more immediate deal could unfold within the private credit or non-bank lenders space.

Besides looking to invest in smaller financial firms, Goldman is also bullish on US equities, while leaning bearish on US Treasury yields.

Due to a forecast of rate cuts coming earlier than expected, Goldman Sachs strategists raised their 12-month outlook for the S&P 500 index from 6,500 to 6,900. They also increased their year-end target from 6,100 to 6,600.

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The growing intersection between traditional finance and digital asset infrastructure has taken another step forward, as Goldman Sachs and BNY Mellon announced a joint initiative aimed at integrating blockchain technology into the money market fund (MMF) ecosystem.

The collaboration will see BNY Mellon leverage Goldman Sachs’ GS DAP® (also known as its private blockchain) to maintain a mirrored tokenized record of customer ownership in select MMFs. This marks the first instance in the United States where mirrored tokenization will be used to reflect ownership in MMFs through a blockchain-based ledger.

The rollout includes major asset managers such as BlackRock, BNY Mellon Investment Management’s Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management.

Investors will now be able to subscribe to and redeem MMF shares using BNY’s Liquidity management platform, which has been integrated with its digital assets platform to connect with the private blockchain.

The mirror tokens created on the Goldman Sachs’ private blockchain platform do not replace official records but serve as a complementary layer that increases the accessibility and potential use cases of MMF shares in a digitized financial ecosystem.

Blockchain Integration to Expand MMF Utility

The mirrored tokenization of MMF shares using blockchain represents a new model for fund management infrastructure. Although the underlying assets remain managed through traditional custodial and compliance channels, the blockchain layer enhances interoperability and real-time transferability.

Goldman Sachs’ GS DAP®, is built on smart contract technology from the startup Digital Asset and offers programmable finance functionality for institutions.

BNY Mellon’s LiquidityDirectSM platform is also one of the leading portals for institutional cash investors, and the integration of the private blockchain opens the door to extending MMF shares into use cases like collateral optimization and intraday liquidity management.

According to Laide Majiyagbe, BNY Mellon’s Global Head of Liquidity, Financing and Collateral, “Mirrored tokenization of MMF shares is a first step in this transition,” noting the company’s position as a link between established financial systems and new technology.

GS DAP® was previously piloted for bond issuance on blockchain networks in Asia and Europe. Its adaptation for MMF share representation in the US signals a broader vision for tokenizing real-world assets beyond equities and debt, potentially reshaping capital markets infrastructure.

This particular use case focuses on liquidity and settlement efficiency in short-term investment vehicles, valued at over $7 trillion globally, according to ICI data.

A Step Toward Collateral Utility and Global Scalability

Mathew McDermott, Global Head of Digital Assets at Goldman Sachs, emphasized the potential benefits of using tokenized MMF shares as collateral in various trading and settlement contexts.

“Using tokens representing the value of shares of Money Market Funds on GS DAP® would enable us to unlock their utility as a form of collateral and open up more seamless transferability in the future,” he said in a statement.

BNY Mellon will continue to serve as the official recordkeeper, maintaining existing regulatory compliance and settlement protocols. However, the addition of tokenized mirrors creates new flexibility for financial institutions seeking to modernize collateral management and liquidity strategies.

While this initiative currently focuses on US MMFs, both institutions signaled interest in expanding the model globally, potentially applying similar technology to other fund structures and asset classes.

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Tanzeel Akhtar

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Tanzeel Akhtar

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Tanzeel Akhtar is a seasoned journalist who has been reporting on cryptocurrency and blockchain technology since 2015. Her work has appeared in leading publications including The Wall Street Journal,…

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Last updated: 

July 9, 2025

Ripple has appointed the Bank of New York Mellon Corporation (BNY Mellon) as the primary custodian for its enterprise-grade stablecoin, Ripple USD (RLUSD).

According to Ripple this is a step forward to driving institutional adoption of digital assets, with BNY Mellon growing its role in bridging traditional finance and the digital asset space.

RLUSD: Built for Institutional-Scale Use

RLUSD stands out in the crowded stablecoin market for its focus on regulatory compliance, transparency, and enterprise utility.

Issued under a New York Department of Financial Services (NYDFS) Trust Company Charter, RLUSD is designed to meet the operational and risk requirements of financial institutions. RLUSD aims to improve the speed, cost, and efficiency of cross-border payments.

BNY Mellon Brings Proven Custody Infrastructure

By choosing BNY Mellon as the primary reserve custodian, Ripple said it is leaning on the bank’s expertise in digital asset infrastructure. BNY will provide not only custody services but also transaction banking capabilities that support RLUSD’s operations.

The partnership builds on BNY’s track record in stablecoin servicing and reflects its strategic interest in enabling interoperability between digital and traditional financial systems.

“BNY brings together demonstrable custody expertise and a strong commitment to financial innovation in this rapidly changing landscape,” said Jack McDonald, SVP of Stablecoins at Ripple.

“This makes it the ideal partner for Ripple and RLUSD.”

A Step Forward in Digital Asset Integration

This latest partnership is a shift in how legacy financial institutions are responding to the digital asset revolution. BNY Mellon’s involvement strengthens the credibility of RLUSD.

“As primary custodian, we are thrilled to support the growth and adoption of RLUSD by facilitating the seamless movement of reserve assets and cash to support conversions,” said Emily Portney, Global Head of Asset Servicing at BNY.

Swiss Bank Embraces Ripple’s RLUSD

Switzerland-based AMINA Bank became the first international lender to offer custody and trading services for Ripple’s RLUSD stablecoin.

XRP is also up by an impressive 400% in the past year, making it one of the best-performing top-100 coins within this timeframe. And with XRP ETFs likely to gain approval later this year, the long-term XRP price prediction continues to look very encouraging.

In the past day, Zug-based AMINA has revealed that it has become the first bank in the world to support RLUSD, with the Swiss lender planning to expand its related services in the coming months.

Other RLUSD expansion news includes the stablecoin also gaining regulatory approval from Dubai’s financial regulator.

The Bank of New York Mellon (BNY Mellon) disclosed holdings of more than $13 million in Bitcoin exchange-traded funds (ETFs) at the end of the fourth quarter, marking another sign of traditional financial institutions increasing their exposure to digital assets.

According to a newly filed disclosure with the SEC, BNY Mellon owns 115,108 shares of WisdomTree Bitcoin Fund (BTCW), valued at approximately $11.87 million, and 25,309 shares of BlackRock’s iShares Bitcoin Trust (IBIT), worth about $1.4 million.

Wallstreet warming up to Bitcoin

BNY Mellon’s position in Bitcoin ETFs adds to a growing trend among major Wall Street banks cautiously entering the digital asset space.

JPMorgan Chase, for instance, holds nearly $1 million in Bitcoin ETF shares, while Goldman Sachs reported an exposure of over $2 billion in Bitcoin and Ethereum ETF holdings at the end of the fourth quarter.

The SEC approved spot Bitcoin ETFs in early 2024, allowing institutional and retail investors to gain exposure to Bitcoin without direct custody of the asset. The move has been widely regarded as a pivotal moment for crypto adoption in traditional finance.

Despite increasing participation through ETF investments, regulatory constraints continue to prevent major banks from directly holding or trading cryptocurrencies.

Goldman Sachs CEO David Solomon reiterated in December that regulatory barriers limit banks from direct crypto ownership, stating that while the firm provides advisory services on digital assets, it is restricted from holding Bitcoin as a principal.

Regulatory stance shifting

Despite the current limitations, regulators are starting to shift their stances under the new US administration. Federal Reserve Chair Jerome Powell recently reaffirmed that the Fed will not block banks from offering crypto services, provided they manage associated risks.

Speaking before Congress on Feb. 12, he noted that many Fed-regulated banks already engage in crypto under established guidelines but warned against excessive exposure. However, he did not discuss banks potentially investing and holding Bitcoin in their treasuries.

Powell’s comments align with a broader shift toward a pro-crypto stance in Washington. Congress recently advanced bipartisan legislation to establish clearer crypto regulations, while the SEC has about-faced on its enforcement-heavy approach by pausing several lawsuits against major crypto firms.

Additionally, the Treasury has signaled openness to stablecoin oversight, and lawmakers continue pressing for regulatory clarity to prevent innovation from moving offshore.

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