Bank of New York Mellon Corp. and Goldman Sachs Group Inc. are collaborating to use blockchain technology to maintain an ownership record of money market funds.

Goldman Sachs and BNY Mellon are tokenizing money market funds to stay competitive as stablecoin adoption surges. JPMorgan strategist Teresa Ho says the move could expand use cases, including margin collateral.

The tie-up between Goldman Sachs and BNY will help money funds hold their own against the rise of stablecoins while unlocking other uses, according to strategists.