A tokenization that is gaining momentum. Tokenization is the fact of representing an active active world in the form of a digital token on a blockchain. This process allows you to take advantage of the advantages of the blockchain, namely transparency and accessibility. For several years, tokenization has been at the heart of discussions in traditional finance. Thus, according to a Moody’s reportthe tokenized funds reached $ 5.7 billion.
- Moody’s revealed that the value of the tokenized funds has reached an impressive amount of $ 5.7 billion since 2021.
- The BlackRock giant dominates the token funds market with its USD Institutional Digital Liquidity Fund fund, managing $ 2.5 billion.
Tokenized funds reach $ 5.7 billion
In a report published Tuesday, June 3, the company Moody’s revealed that the Tokenized funds had reached a total of $ 5.7 billion assets since 2021.
In more detail, these are short -term liquidity funds, backed by US Treasury bills or other low -risk assets.
According to Moody’s, these funds are mainly used by institutional investors to optimize their performance compared to stablecoins.
In addition, they can be used for managing the liquidity of insurance companies or as a collateral in trading or loan operations.
In practice, these funds operate similarly to traditional monetary funds. However, they use blockchain to issue and manage fractional actions, allowing real -time regulations.
According to data from the Federal Reserve, the American monetary funds held approximately $ 7,000 billion total assets in December 2024.
Blackrock at the top of the list
Unsurprisingly, the giant Blackrock is at the top of the list of companies that offer token funds.
Thus, his fund USD Institutional Digital Liquidity Fund is the most important with 2.5 billion dollars in assets under management.
It is followed by the Onchain Us Government Money Fund by Franklin Templeton with $ 700 million.
For its part, Circle also offers a tokenized fund entitled Circle Reserve Fundwhich holds $ 480 million in assets under management.
Obviously, the tokenized funds are not without risk. Indeed, in addition to the risks linked to conventional monetary funds, tokenized funds must face the risks inherent in blockchain. Namely, flaws in smart contracts, cyber attacks, network availability or regulatory uncertainty.
In parallel, tokenization also affects other sectors. For example, the Robinhood platform recently announced the tokenization of American shares to make them accessible to European investors.