Bank for International Settlements Report: Tokenized Money Market Fund Size Exceeds 9 Billion USD

According to Cryptopolitan, the latest report from the Bank for International Settlements (BIS) indicates that the total assets of tokenized money market funds have surged from $770 million at the end of 2023 to nearly $9 billion, becoming a key source of collateral in the crypto ecosystem.

The institution warns that while such assets possess the "flexibility of stablecoins," they also bring substantial operational and liquidity risks. BIS identifies liquidity mismatch as the primary risk of tokenized money market funds. It points out that although investors can redeem tokenized fund shares daily, the underlying assets still follow the traditional T+1 settlement mechanism. During periods of market stress, concentrated redemption demands will expose this structural risk.

Subsequently, the organization noted that the market is still in its early stages of development, and solutions are continuously being refined, such as the distributed ledger repo (DLR) system launched by fintech company Broadridge, which enables same-day settlement of tokenized government bond transfers.