This white paper explores how tokenised money market funds (MMFs) are moving from theory to live application, redefining how liquidity is managed, collateral is mobilised, and cash moves across the financial system. Drawing on insights from across the asset management ecosystem - including State Street Global Advisors, Northern Trust, Sygnum Bank, Aviva Investors, CFA Institute, eToro, and Fireblocks - it explores the drivers, use cases, and regulatory developments shaping this next phase of digital finance.
The report also considers how tokenised MMFs could enhance collateral efficiency, strengthen market resilience, and open new channels for fund distribution as on-chain infrastructure matures.
Key themes
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A new collateral paradigm: Tokenised MMFs can be posted directly in margin and financing workflows, reducing redemption pressures and systemic liquidity risk during market stress.
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From pilot to production: Major asset managers - including Franklin Templeton, BlackRock, and BNP Paribas - have launched tokenised MMFs, demonstrating that tokenisation is now operational rather than experimental.
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Regulatory momentum and fragmentation: Policymakers in the UK, US, and Europe are defining frameworks for digital assets, with initiatives such as the UK’s Digital Securities Sandbox and the US Genius Act paving the way for institutional adoption.
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Infrastructure convergence: Traditional fund networks and blockchain platforms are beginning to interoperate, enabling tokenised MMFs to function within existing fund-administration models.
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Wider market implications: The adoption of tokenised MMFs signals a broader shift toward on-chain fund distribution, custody, and treasury management, accelerating the transition to a digitally enabled financial ecosystem.
Download today and read the full analysis from Calastone and Funds Europe on how tokenised money market funds are reshaping global cash management.