Tokenized Money Funds

Definition ∞ Tokenized money funds are digital representations of traditional money market funds, existing as tokens on a blockchain. These tokens aim to provide investors with exposure to short-term, high-quality debt instruments while offering the liquidity and transparency benefits of blockchain technology. They typically represent shares in a diversified portfolio of cash equivalents.
Context ∞ Tokenized money funds are emerging as a bridge between traditional finance and decentralized finance, offering stable, yield-generating opportunities within the digital asset ecosystem. News often reports on the launch of new funds and their compliance with financial regulations. The development of robust regulatory frameworks for these products is a critical ongoing discussion.