Tokenized MMFs are the fastest growing asset in onchain finance. It is revolutionizing onchain finance, and the growth is nothing short of extraordinary in the single year of 2024:
+500% AUM growthÂ
+920% holder count increase
+100 additional utility venues
Major players like BlackRock, Guggenheim, UBS, and Brevan Howard entered the race
Combining these growth stats and the latest data on current adoption trend on stablecoin, then the time to enter the race for onchain capital is now. The first-mover advantage is immense—just look at the strides made by pioneers like BlackRock and Ondo.
However, traditional asset managers face a critical hurdle: a lack of a proven go-to-market (GTM) playbook for tokenized MMFs.
Having worked directly with two of the top three tokenized US MMF leaders—Ondo and Hashnote—over the past five years, I’ve had a front-row seat to the growth of the entire industry.
In this Weekly Research, I will share the three key GTM stages for tokenized MMFs:
Tokenized MMF as the Onchain Version of Traditional MMFs
Tokenized MMF as a Spendable Instant Savings Account
Tokenized MMF as the Foundation of Onchain Finance
Let’s break down each stage to uncover how asset managers can navigate this explosive market.
Tokenized MMF as the Onchain Version of Traditional MMFs
Just as MMF is a solution for traditional capital looking for liquid yield opportunities with minimum risks, tokenized MMF is that solution for onchain capital looking for liquid yield opportunities with little risk.
This is the first stage of a tokenized MMF GTM. The singular aim here is to distribute.Â
There are two paths for an asset manager when it comes to tokenized MMF distribution.
Traditional capital
Crypto-native capital
The traditional capital is a hard game. And it is a long game. Why? Because any traditional capital source of size already has access, arrangements and processes tailored to traditional tokenized MMF products.Â
Unless tokenized MMF products want to compete on cost vs traditional MMF - which I dont think is feasible or advisable due to issues mentioned here - and compress their margin, traditional capital has no reason to switch over. Remember investors also have switching costs.
That leaves us with crypto-native capital, which translates to USD stablecoin at the present. Traditional capital of course has a large part to play but that is only relevant until we reach stage 3.Â
Below is the table of top 5 tokenized MMF issuer by AUM.

Out of the top 5 tokenized MMF issuers, only Franklin Templeton’s AUM has a traditional capital component at 50%. For context, Franklin Templeton started its tokenized MMF back in 2022 and used blockchain mostly as a back-end record keeping tool instead of a payment/distribution channel. And this part of its AUM number has been stagnating and declining steadily in the past year. See below.

These data show that crypto native capital is the driver for tokenized MMF AUM growth. The reason is pretty simple - tokenized MMF fulfills onchain capital’s need for risk-free rate yield without the hassle of having to deal with offramping and getting access to the US Treasury market.Â
Now given that this pile of money aka stablecoin is likely to grow in the decade to come, the big execution question for asset managers is how to distribute to this increasingly sizable capital pool.
And of course, that is my specialty. Feel free to contact me or book a slot if you are an asset manager who is tired of trailing behind your competitors.Â
Once this is achieved, the next stage of the AUM flywheel can be unlocked.