Tokenized Money Market Funds Surge to $9B Amid BIS Liquidity Warnings
Tokenized money market funds have ballooned from $770 million to nearly $9 billion in under a year, becoming a critical collateral source in crypto markets. The Bank for International Settlements warns this explosive growth brings hidden risks—particularly liquidity mismatches—despite the convenience of stablecoin-like flexibility.
Daily redemptions clash with next-day settlement of underlying assets, creating vulnerability during market stress. Broadridge's Distributed Ledger Repo solution exemplifies emerging fixes, but the sector remains in its infancy. "Tokenization bridges TradFi efficiency with DeFi accessibility," observes one blockchain analyst, "but the plumbing isn't pressure-tested yet."