Tokenized Money Market Funds: Four Pillars of Growth

Tokenized money market funds are entering a new phase of commercialization

The first phase focused on bringing government securities and money market funds on-chain, giving digital-asset investors access to regulated, yield-bearing instruments.

That market is increasingly competitive. There are now close to 100 tokenized MMF products, yet only 5 have amassed $1B+ AUM. 80% hold less than $50 million in AUM.

When I first worked with Hashnote, now part of Circle, on its tokenized MMF, the defining question was who could successfully bring one to market.

That is no longer enough.

The strategic question has changed.

It is no longer simply which asset managers can tokenize a fund. It is which managers can embed their products into the infrastructure through which digital liquidity is aggregated, held, managed and deployed.

That is the difference between having $10M AUM and $1B+ AUM. We've moved on from product availability to commercial integration.

Four pillars will determine where the next wave of growth comes from:

1. Stablecoin reserve management

2. Embedded digital distribution

3. Treasury management

4. Collateral utility

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