2026 Tokenized Money Market Fund Outlook (part 1)

It is said that 2025 was the year tokenization truly took off. One of the most frequently cited data points is the 100% growth in tokenized money market fund (tMMF) AUM. The asset class became a major tokenization category with Fidelity, State Street and JPMorgan Asset Management all taking their first steps.

But as we move into 2026, what does the tokenized MMF market structure actually look like? 

The answers can be found in the two things happened in onchain asset management in at end of 2025 that are likely to shake up the landscape: 

1. BlackRock’s tMMF BUIDL saw 40% outflow, decimating its AUM

2. JPMorgan Asset Management launched its own tMMF MONY

Taken together, these events send strong signals about where tokenized MMFs are heading in 2026 and beyond.

In this two-part series, I will unpack what happened behind the headlines by addressing five critical questions:

1. What drove the 40% AUM plunge for BlackRock’s BUIDL

2. What those dynamics reveal about the current onchain tMMF market structure, specifically what are the constraints of onchain tMMF market

3. What makes JPMorgan’s MONY different from existing tokenized MMFs

4. What will likely be the key deciding factors to enable tMMF to grow to an institutional scale

5. What is the strategy asset managers need to pursue to compete successfully in the highly competitive tMMF landscape

In this first part, I will address the questions 1 and 2. And answer the rest in the 2nd part. Let’s dive in.

What drove BlackRock’s 40% AUM decimation?

Below is the AUM composition comparison of BlackRock’s BUIDL between Nov 2025 and Jan 2026 per RWA.xyz data

BUIDL AUM Change Breakdown:

• BNB Chain: +500M

• Polygon: -512M

• Avalanche: -432M

• Ethereum: -$387M

• Aptos: -249M

Net AUM change: approx. -1,100B

For those who have recently joined Tokenization Insight, this is not the first time that BlackRock's tokenized MMF has experienced a sharp AUM drawdown. Roughly six months earlier, BUIDL saw a 14 percent AUM outflow over a two-week period. I previously covered that episode in detail in Behind BlackRock's tMMF 14% Outflow. 

Let's start our deep dive on BUIDL's AUM change with the biggest outflow chain: Polygon. Below is the list of significant movements of BUIDL holdings on Polygon.