Amundi, Europe’s leading asset manager, has launched its first tokenized share class for a euro-denominated money market fund. This launch marks a significant milestone in the 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. The initial transaction for this tokenized fund was processed on the Ethereum network on November 4.
The rollout was executed in partnership with CACEIS, a prominent European asset-servicing firm. CACEIS provided the necessary infrastructure, including tokenization platforms, investor wallets, and a digital order system. This system facilitates subscriptions and redemptions efficiently. The collaboration aims to streamline fund operations, broaden investor access, and enable around-the-clock trading. These improvements address 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. These include money-market instruments and overnight repurchase agreements issued by European sovereigns. This investment strategy aligns with the firm’s broader objective to leverage blockchain technology while maintaining conservative investment profiles.
With approximately 2.3 trillion euros ($2.6 trillion) in assets under management, Amundi manages a vast client base. This base includes more than 100 million retail investors. The company, headquartered in Paris, France, 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 experienced explosive growth this year. Data from RWA.xyz indicates that BlackRock’s on-chain money market product now holds roughly $2.3 billion in tokenized assets. Franklin Templeton’s fund manages over $826 million in similar holdings.
Both firms have expanded their offerings across multiple blockchain networks. Franklin Templeton recently integrated its tokenization platform onto the Canton Network, a permissioned ecosystem specifically designed for financial institutions. Meanwhile, BlackRock has extended its tokenized offerings beyond Ethereum. These extensions now include Aptos, Arbitrum, Avalanche, Optimism, and Polygon. This multi-chain strategy aims to enhance accessibility and resilience.
A recent publication from the Bank for International Settlements highlights the rapid rise of tokenized money market funds. These funds reached a collective value of $9 billion by late October. This represents 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. These risks stem from increased reliance on tokenized Treasury portfolios as collateral. The report underscores the need for prudent risk management as the sector evolves.