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Moody\u2019s finds growing institutional demand for tokenized money market funds, citing benefits in liquidity, compliance and operational efficiency.<\/p>\n
Tokenized short-term funds, a new class of digital financial products bridging traditional and decentralized finance, have grown to reach $5.7 billion in assets since 2021, according to a new Moody\u2019s report.\u00a0 <\/p>\n
The credit rating service sees growing interest from traditional asset managers, insurers, and brokerages looking to offer clients access between fiat and digital markets. \u201cTokenized short-term liquidity funds are a small but rapidly growing product,\u201d notes a June 3 report shared with Cointelegraph.<\/p>\n
These funds, typically backed by US Treasurys or other low-risk assets, operate similarly to traditional money market funds but use blockchain to issue and manage fractional shares, enabling real-time settlement. Data from the Federal Reserve shows that US money market funds held app<\/a>roximately $7 trillion in total assets as of December 2024.\u00a0<\/p>\n Read more<\/p>\n<\/p>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more News<\/a> articles, you can visit our General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n