Europe’s Largest Asset Manager Embraces Tokenized Money Market Funds
Amundi, Europe’s leading asset manager, has launched its first tokenized share class for a euro-denominated money market fund, marking a significant milestone in institutional adoption of blockchain technology within traditional finance. The innovative fund now offers investors a choice between the classical structure and its blockchain-based version, with the initial transaction processed on the Ethereum network on November 4.
The rollout was executed in partnership with CACEIS, a prominent European asset-servicing firm that provided the necessary infrastructure including tokenization platforms, investor wallets, and a digital order system that facilitates subscriptions and redemptions efficiently. This collaboration aims to streamline fund operations, broaden investor access, and enable around-the-clock tradingโaddressing long-standing liquidity and accessibility limitations in traditional fund markets.
According to Amundi, the tokenized fund invests primarily in short-term, high-quality euro-denominated debt instruments, such as money-market instruments and overnight repurchase agreements issued by European sovereigns. This positioning aligns with the firmโs broader strategy to leverage blockchain technology while maintaining conservative investment profiles.
With an assets under management of approximately 2.3 trillion euros ($2.6 trillion), Amundi manages a vast client base, including more than 100 million retail investors. Headquartered in Paris, France, the company is at the forefront of integrating digital assets into mainstream asset management.
Growing Momentum in Tokenized Funds Driven by Major Players
Tokenized money market funds focused on US Treasuries have seen explosive growth this year. Data from RWA.xyz indicates that BlackRockโs on-chain money market product now holds roughly $2.3 billion in tokenized assets, while Franklin Templetonโs fund manages over $826 million in similar holdings.
Both firms have expanded across multiple blockchain networks. Franklin Templeton recently integrated its tokenization platform onto the Canton Network, a permissioned ecosystem tailored for financial institutions. Meanwhile, BlackRock has extended its tokenized offerings beyond Ethereum to include Aptos, Arbitrum, Avalanche, Optimism, and Polygon, reflecting a multi-chain strategy to enhance accessibility and resilience.
A recent publication from the Bank for International Settlements highlights the rapid rise of tokenized money market funds, which reached a collective value of $9 billion by late October, a sharp increase from approximately $770 million at the end of 2023. While this indicates substantial industry adoption, the report also cautions about potential operational and liquidity risks stemming from increased reliance on tokenized Treasury portfolios as collateral, underscoring the need for prudent risk management as the sector evolves.
