Financial giants Citi and Fidelity International announced the details of their first-of-its-kind proof-of-concept tokenized money market fund.
Financial giants Citi and Fidelity International announced the details of their first-of-its-kind proof-of-concept tokenized money market fund. Set to make its full debut for the first time at the Singapore FinTech Festival, this project will directly embed foreign exchange swaps within the blockchain.
The development represents another key step in the modernization of money market funds, which are investment vehicles that would invest in short-term government securities, such as U.S. Treasury bills. In return, tokenization promises a whole new level of transparency, line item position management efficiency, and instant redeemability, likely unlocking the doors to decentralized finance integrations as well.
The project is part of the Monetary Authority of Singapore (MAS)’s Project Guardian, a global collaboration between financial institutions and policymakers to explore asset tokenization through blockchain technology.
Sam Hewson, Citi's Head of FX Sales, sees this new class of assets as a revolutionary transformation in the future of digital assets: "As tokenization continues to evolve in capital markets, we see a potential future in which investors could trade and settle digital assets in real-time, in different currencies, and across multiple distributed ledger technology platforms.”
This announcement comes hot on the heels of UBS's recent foray into the tokenization space with their uMINT platform, the UBS USD Money Market Investment Fund Token.
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