Goldman Sachs moves $100B Treasury fund onto digital asset rails

Goldman Sachs is giving institutional crypto firms a new way to access one of its largest investment products, not by tokenizing it, but by plugging it into a settlement network they already use.

The Wall Street giant's Financial Square Treasury Instruments Fund, known by its ticker FTIXX, is now available through the Lynq Real-Time Settlement Network.

tZERO, an SEC-registered broker-dealer that specializes in blockchain-based financial infrastructure, will handle transactions for qualified U.S. participants on the platform.

Related: Citi turns to Coinbase to help clients accept stablecoin payments

A traditional fund on new rails

FTIXX is a money market mutual fund that invests exclusively in U.S. Treasury obligations, things like Treasury bills and notes backed by the full faith and credit of the U.S. government.

In simple terms, it's a low-risk place for institutions to park cash and earn a return. The fund manages roughly $100 billion in assets.

What makes this move notable is how the fund is being distributed. Rivals such as BlackRock and Franklin Templetonhave leaned on tokenized funds, whose shares are issued and recorded on a blockchain. Goldman Sachs is instead offering FTIXX on Lynq in its traditional format, not through the fund's tokenized share class.