The Future Of Money Market Fund Tokens

There are currently $11.5 billion tokenized RWAs on-chain with some projections estimating the value could reach $16 trillion by 2030. As institutional-grade decentralized finance gains traction, we'll continue to see established investment vehicles move onto the blockchain looking to find opportunities for improved liquidity, faster settlement, and reduced operational costs.

XDC recently announced the launch of the first funds on its platform in token form in collaboration with Archax, the FCA-regulated digital asset exchange, broker and custodian, which is the first meaningful milestone in the partnership. These fund tokens represent four of the world's largest money MMFs from providers including abrdn, BlackRock, Fidelity International and State Street, and will be followed by others from the 100+ available through Archax from a variety of asset managers.

Providing digital representations of major MMFs opens up a potential new audience for these types of yield-bearing products that historically have been challenging for some to access. By bringing these established investment vehicles onto the blockchain, XDC Network and Archax are creating new opportunities for improved liquidity, faster settlement, and reduced operational costs.

The implementation leverages XDC Network's delegated proof-of-stake consensus mechanism, enabling transactions with sub-second finality and near-zero gas fees. The platform's enterprise-grade infrastructure aims to meet compliance with institutional requirements for security, scalability, and regulatory reporting.

The XDC platform's robust performance and functionality sets up the ideal protocol for real-world asset tokenization for institutions that want to work with regulated entities like Archax. This would unlock access to some of the world's largest MMFs with transparency and efficiency.

The future of fund tokens looks bright!