Author: Tree Chart Blockchain
By the end of 2024, according to estimates by Boston Consulting Group (BCG), the global tokenized fund management scale just exceeded 2 billion dollars, still a relatively small experimental market; by May 2026, the scale of just tokenized government bonds and money market funds has already reached about 10 billion dollars, with BlackRock's tokenized fund BUIDL capturing approximately 40% of that market share. Around the same time, Hong Kong changed the rules for tokenized funds from "only redeemable" to "can be traded 24/7," while banks in Singapore began directly using tokenized money market fund shares as collateral for loans.
Now the real competition is: who can make these digital shares liquid—accepted by banks, used by trading platforms, and treated as collateral—transforming from a "on-chain product" into an "entry point" that institutional funds will actually use.
United States: Binding Stablecoin Reserves
The United States is the market that has gone the furthest and the fastest in this field. In 2021, U.S. asset management company Franklin Templeton launched the on-chain money fund Franklin OnChain U.S. Government Money Fund, recording fund shares on the blockchain, one of the earliest explorations of digitalizing traditional registered funds. In 2024, BlackRock launched BUIDL, investing in U.S. government bonds, cash, and repurchase agreements, rapidly growing to nearly 3 billion dollars in a little more than a year, covering over 8 public chains and approved as eligible collateral by several derivatives platforms. Franklin Templeton's BENJI is the world's first U.S. registered mutual fund using public chains as its official registration system, with a scale of about 828 million dollars. JPMorgan also launched two tokenized money market products MONY and JLTXX from the end of 2025 to May 2026.
What is particularly noteworthy is the latest step. JPMorgan's JLTXX is directly deployed on the Ethereum public chain, uniquely designed to meet the reserve needs of stablecoin issuers under the U.S. stablecoin regulatory proposal called the "GENIUS Act." This means a new closed loop is taking shape: stablecoins need compliant reserve assets, reserve assets enter money market funds, money market funds generate returns, and fund shares can enter on-chain trading and settlement networks. This is no longer a simple "fund on-chain," but rather traditional financial assets starting to transform into underlying assets of the digital currency system. For institutions like BlackRock, Franklin Templeton, and JPMorgan, the significance of tokenization is no longer just the creation of a new fund but maintaining control over asset management in the next round of the digital financial system.
Europe and the UK: Rules First
If the U.S. competition is about who has the larger asset management scale, Europe focuses more on who can integrate it into the existing regulatory framework.
The French company Spiko is one of the earlier examples in Europe. It launched two tokenized money market funds in 2024, investing in short-term government bonds in U.S. dollars and euros, and was one of the first such products approved by the EU; in 2025, it completed a 22 million dollar Series A financing, targeting enterprise idle cash management as its main scenario—attempting to let idle cash that used to stay in bank accounts earn short-term government bond returns with lower friction. By 2026, traditional asset management giants began to follow suit: the UK asset management company Schroders obtained regulatory approval from Ireland to launch an on-chain share class for a U.S. dollar money market fund, executing redemptions and share transfers through JPMorgan’s blockchain platform Kinexys, marking the transition of tokenization from an innovative project to a formal product line.
The UK is taking a different path. Rather than competing on the number of products, the Financial Conduct Authority (FCA) is more concerned about whether existing financial market rules should adjust once funds, bonds, transactions, and settlements enter the digital environment. The position that the UK wants to compete for is closer to the role London has held in the global financial market for decades—not just providing products, but establishing the rules for how the next generation of financial infrastructure operates.
Singapore: Funds as Collateral
Singapore’s progress in this area has been faster than many expected. In November 2025, Franklin Templeton and DBS Bank jointly launched Singapore's first tokenized money market fund—Franklin Onchain U.S. Dollar Short-Term Money Market Fund, which was approved by the Monetary Authority of Singapore and initially opened to DBS wealth clients and qualified investors.
The real turning point came later. In September 2025, DBS, Franklin Templeton, and the U.S. blockchain company Ripple reached a cooperation agreement to explore providing trading and lending solutions using tokenized money market funds paired with the stablecoin RLUSD. DBS plans to enable qualifying clients to trade fund shares and further use them as collateral for loans. In June this year, Singapore's quantitative fund Calais used a tokenized UBS money market fund share as over-the-counter settlement collateral to support cryptocurrency trading on Bybit—another important case further integrating tokenized money market funds into the cryptocurrency trading and settlement collateral system. Looking at these steps together shows that the true commercial value of tokenized money market funds may not lie in the yield itself, but in whether they can become a new high-quality digital collateral. Once money market funds can be pledged, borrowed, and settled, their role shifts from "investment products" to part of "financial infrastructure."
Hong Kong: 7 x 24 Open
Hong Kong has also made significant strides in the past six months. On April 20, 2026, the Hong Kong Securities and Futures Commission announced a new regulatory framework that allows tokenized investment products recognized by the Commission to be traded on licensed virtual asset trading platforms in the secondary market, with the first batch of products expected to focus primarily on tokenized money market funds. The Executive Director of the Commission's Intermediaries Division, Ye Zhi Heng, stated that this is the world's first mechanism providing a clear regulatory framework for secondary market trading of tokenized funds.
The significance of this statement lies in: Previously, both BUIDL and the tokenized fund BENJI were essentially "redemption-driven" products, where investors could only subscribe and redeem at net asset value and could not trade at any time like stocks or ETFs. What Hong Kong has done this time is transform money market funds from "on-chain hold-type wealth management products" into standardized digital securities that can be traded 24/7, shifting the trading logic closer to ETFs and LOFs. The Chief Executive of the Hong Kong Securities and Futures Commission, Lam Fung Yi, explained that the new initiative allows for traditional securities products to be tokenized and traded at night and on weekends, providing round-the-clock liquidity through regulated stablecoins and tokenized deposits.
Data corroborate the speed of this transition. Since the Hong Kong Securities and Futures Commission first established the tokenization regulatory framework at the end of 2023, by March 2026, 13 tokenized products had already been publicly sold, with total assets under management growing about seven times within a year, reaching 10.7 billion HKD; data from the Hong Kong Monetary Development Council indicates that the market value of tokenized funds in Hong Kong soared from about 2 billion dollars in 2024 to over 8 billion dollars in 2025. The Monetary Authority's tokenized asset sandbox project, Project Ensemble, has also entered a new phase, exploring trading of tokenized assets including money market funds and settlement using tokenized deposits—this means the concerns of Hong Kong regulators have shifted from "how to digitize fund shares" to "how to settle funds after funds are digitized," with the former being product innovation and the latter being infrastructure innovation.
Specific to the issuers, there are several frontrunners. In February 2025, China Asset Management (Hong Kong) launched the first tokenized fund for retail investors in the Asia-Pacific region—the Hong Kong Dollar Digital Currency Fund, and in July of the same year, it successively launched U.S. Dollar Digital Currency Fund and Renminbi Digital Currency Fund, with the Renminbi Digital Currency Fund being the world's first, thus completing a series of tokenized funds under China Asset Management (Hong Kong) across the three major currencies: HKD, USD, and RMB.
Southern Eastern Union launched a non-listed tokenized category of Hong Kong Dollar Money Market ETF in June this year in collaboration with HSBC, and signed a memorandum of cooperation with the Hong Kong virtual asset trading platform OSL, representing a traditional large issuer following up after the regulatory opening. Additionally, licensed wealth tech platforms taking a lightweight cooperative path are also synchronously following up—Fosun Wealth's Star Road Technology Finloop has integrated a digital share product FUIDL anchored to an AAA-rated U.S. money market fund with the Conflux network. Such cooperation is also meaningful for the public chain itself— as more traditional assets go on-chain, public chains have the opportunity to evolve from merely supporting digital asset trading to further participating in the infrastructure of real financial asset circulation.
From China Asset Management (Hong Kong) laying out multiple currencies, to Southern Eastern Union collaborating with HSBC and OSL’s traditional approach, to Finloop's lightweight collaboration with a public chain, what has emerged in Hong Kong over the past half year is asset management agencies, banks, trading platforms, and public chains all finding their place under the same new rules—it doesn’t necessarily need to have the largest scale of money market funds globally but can contend for being a central node in the digital cash flows of Asia.
The Most Direct Changes
The earlier examples seem to be games among institutions, but products are already being presented to ordinary investors. China Asset Management (Hong Kong)'s Hong Kong Dollar Digital Currency Fund is open for subscription to retail investors; Singapore's DBS tokenized money market fund has thresholds for wealth clients and qualified investors, which are not exclusively for institutions.
For this group of investors, the most direct changes are two things:
One is that the time window for redemptions and trading has changed from "banking business days" to "anytime," meaning idle cash no longer has to wait until Monday to be moved;
Two is that these types of products essentially remain money market funds investing in short-term government bonds and bank deposits, with yields and risk levels not significantly different from traditional money market funds, just with an added layer of a digital shell that can be traded at any time and accepted as collateral by platforms.
In other words, ordinary investors do not need to understand blockchain but can already indirectly enjoy the liquidity benefits brought by this competition for entry points—what needs to be clarified is who the issuers and custodians of this "digital shell" are, as this determines whose rules the money ultimately falls under.
Who Gets the Admission Ticket
The United States has proven that asset management giants can move funds on-chain, while Europe is incorporating this into formal regulatory systems, Singapore's banks are already beginning to use them as collateral, and Hong Kong is simultaneously accommodating issuers, banks, and trading platforms within the same market. Although these four paths seem different, they all point to one thing: money market funds are transforming from a "tool for earning returns" into an intermediary layer within the institutional digital funding system. The largest scale in the United States has gained a first-mover advantage, but not every rule can be solely defined by them.
Once it truly plays this role, the competitors it faces will no longer just be another money market fund but also banking deposits, stablecoins, and short-term government bonds—these more fundamental cash management tools. The real unanswered question is: when money market funds, bank deposits, and digital currencies gradually enter the same network, will the first to learn to use this network be more likely to receive the admission ticket than those with the most money.
*The content of this article is for reference only and does not constitute any investment advice. The market carries risks, and investment should be cautious.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
