Template-Type: ReDIF-Paper 1.0
Author-Name: Matteo Aquilina
Author-X-Name-First: Matteo
Author-X-Name-Last: Aquilina
Author-Name: Ulf Lewrick
Author-X-Name-First: Ulf
Author-X-Name-Last: Lewrick
Author-Name: Federico Ravenna
Author-X-Name-First: Federico
Author-X-Name-Last: Ravenna
Author-Name: Lorenzo Schönleber
Author-X-Name-First: Lorenzo
Author-X-Name-Last: Schönleber
Title: The rise of tokenised money market funds
Abstract: Tokenised money market funds (TMMFs) are a fast-growing collateral asset and savings instrument in the crypto ecosystem. Like stablecoins, TMMFs circulate on public permissionless blockchains but offer returns at money market rates and regulatory protections as securities.
TMMFs currently cater strongly to decentralised finance protocols and rely on "allow-listing" of blockchain wallets to constrain peer-to-peer trading of their tokens to ensure regulatory compliance. However, such allow lists only constrain direct holding of TMMFs.
TMMFs give rise to risks that mirror, and potentially amplify, those found in conventional money market funds, such as liquidity mismatches, as well as the operational and anti-money laundering / countering the financing of terrorism-related risks associated with stablecoins.
Length: 8 pages
Creation-Date: 2025-11-26
File-URL: https://www.bis.org/publ/bisbull115.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/bisbull115.htm
File-Format: text/html
Number: 115
Handle: RePEc:bis:bisblt:115