Schroders Launches First Tokenized Fund Share Class with JPMorgan Kinexys
- Tokenization Insight
- 2 hours ago
- 2 min read
Schroders, Britain’s second-largest asset manager, has just received regulatory approval for its first tokenised share class of a US dollar money market fund.
Known as SOAR (Schroders Onchain Active Returns) the share class will use Kinexys by JPMorgan’s multi-chain asset-tokenisation platform.
The infrastructure will allow investors to use smart contracts for activities including redemptions and transfers.
More importantly, Schroders sees a path towards:
➡️ Transferring fund holdings between eligible clients
➡️ Using tokenised MMF shares as collateral
➡️ Supporting 24/7 treasury and liquidity management
The tokenised share class will be issued within an established, Ireland-domiciled money market fund following approval from the Central Bank of Ireland.
➡️ UK Asset Management Industry Tokenization
With this move, 4 of the top 5 UK asset managers have all taken tangible steps towards fund tokenisation:
1️⃣ L&G Asset Management
The UK’s largest asset manager made more than £50 billion of sterling, US dollar and euro liquidity funds available through Calastone’s Tokenisation Distribution network.
2️⃣ Schroders
The UK’s second-largest asset manager is introducing an on-chain share class supported by Kinexys, with transfers, redemptions and future collateral functionality built into the proposition.
3️⃣ Aberdeen
Aberdeen became an early mover by making tokenised representations of its money market funds available through Archax using Hedera and investing directly in the digital securities platform.
4️⃣ Aviva
Aviva tokenized share class of a USD liquidity fund on the public XRP Ledger using Licuido.
Money market funds are emerging as the tokenization starting point for asset managers because they provide the clearest immediate utility: enabling investors to hold yield-bearing cash instruments that can ultimately be transferred, redeemed, programmed and mobilised as collateral through digital infrastructure.
Now everyone has issued their tokenized fund, the more important question is: which asset manager can turn tokenised fund ownership into a genuinely useful 24/7 liquidity, collateral and treasury-management product?
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