Key takeaways
- 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.
BIS Bulletin | No 115 | 26 November 2025
The rise of tokenised money market funds
by Matteo Aquilina, Ulf Lewrick, Federico Ravenna and Lorenzo Schönleber
PDF full text (882kb) | 8 pages
(The views expressed in this publication are those of the authors and not necessarily those of the BIS.)
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Source:
Bank for International Settlements
Basel Committee
bis.org
