Now It's Citi-Fidelity's Turn to Tokenize Money Market Mutual Funds

Citi and Fidelity, two major entities in the financial industry, have just announced the launch of tokenization of money market mutual fund assets into the blockchain. This investment alternative is expected to attract investor interest.

They used a proof-of-concept to tokenize money market funds with foreign currencies combined in efficient onchain fund management.

This money market mutual fund allows for higher transparency, faster and easier position management, instant redemptions, and the potential to be integrated with Decentralized Finance (DeFi).

"As tokenization continues to grow in the capital markets, we see the potential for investors to trade digital assets in real-time, in different currencies, and across multiple blockchain platforms," ​​said Citi's Head of FX Sales Sam Hewson.

This announcement comes three days after UBS launched its first tokenized investment fund. All of these funds will contribute to the growing asset market, which reached US$13 billion for the first time last week.