Tokenized funds hit $5.7B, scaling fast — Moody’s
Tokenized short-term funds have reached $5.7 billion in assets since 2021, driven by interest from traditional asset managers and brokerages. These funds, backed by low-risk assets like US Treasurys, operate similarly to money market funds but utilize blockchain for fractional shares and real-time settlement. The Federal Reserve reports US money market funds held about $7 trillion in assets as of December 2024. Moody’s anticipates growth in this sector, with potential uses including yield optimization and liquidity management. Key players include BlackRock, Franklin Templeton, Superstate, Ondo Finance, and Circle. Companies are exploring tokenization to access broader markets, with Midas and Robinhood offering tokenized products for European investors. Tokenized funds face risks related to blockchain technology, including smart contract flaws and regulatory uncertainty.
