According to the Up-to-date Moody report, tokenized brief -term funds, a novel class of digital financial products, combining conventional and decentralized finances, reached assets worth $ 5.7 billion from 2021.

The credit rating service sees the growing interest of conventional assets managers, insurers and brokerage houses who want to offer clients access between FIAT and digital markets. “The tokenized short -term liquidity funds are a small but rapidly developing product,” notes the report on June 3 shared by Cointelegraph.

These funds, usually supported by American Treasurys or other low -risk assets, act similarly to conventional money market funds, but exploit blockchain to issue fractional shares and fraction management, enabling real -time settlement. Data from the Federal Reserve show that the money market funds in the US had about 7 trillions of USD for the purposes of December 2024.

According to Moody’s, emerging cases of exploit of toxated funds may include optimization of profitability for institutional investors compared to Stablecouins, liquidity management for insurance companies and exploit as security in commercial and loan operations.

“We expect that Aum this space will increase, because most of the main brokerage, private bank management platforms and assets that offer digital assets will probably use a cash type product, such as the tokenized short -term fund, to regularly transfer uninvolved cash into a paid product.”

A handful of players develops the sector. The Blackrock Institutional Digital Fund Fund runs a package with a management of $ 2.5 billion, followed by the US government fund Franklin Templeton from $ 700 million. Other key players are Superstate, Ondo Finance and Circle, whose funds manage from 480 to 660 million dollars.

Companies also look at tokenization as a tool reaching wider markets. The German Midas protocol has recently announced a tokenized certificate supported by American tax accounts for European investors, offering exposure to government bonds with efficiency without a minimum investment.

In May, Robinhood brokerage company made a similar movement to offer investors in Europe exposure to US markets. In addition, the company has recently submitted an offer of the American Commission of Securities and Stock Exchange (SEC) on the regulatory framework for toketenization in this country. According to the CEO of Robinhood, Vlada Teneva, “tokenization is a new paradigm for the institutional allocation of assets.”

The report notes that in addition to credit and liquid risk typical of money market instruments, the toketenized funds are also exposed to gaps related to blockchain technology. These include clever contract defects, cyber threats, network availability and regulatory uncertainty.

“[…] The risk of representation of assets may result from the discrepancy between the blockchain register and other shareholders’ shares on the legal ownership of shares, “says the report.

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