Money Market Fund Tokenization involves converting shares of traditional money market funds into digital tokens on a blockchain. This process aims to increase liquidity, reduce settlement times, and enable fractional ownership. It merges the stability of conventional financial instruments with the efficiency of distributed ledger technology. Tokenized funds can be traded and managed on decentralized platforms.
Context
Money Market Fund Tokenization is a significant area of development at the intersection of traditional finance and digital assets, frequently appearing in financial news. Discussions often highlight the potential for enhanced capital efficiency and broader investor access to these stable assets. Regulatory clarity and technological integration remain key hurdles for widespread adoption.
The HKMA pilot integrates tokenized commercial bank deposits with the RTGS system, establishing a compliant, 24/7 liquidity and treasury management rail.
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