Tokenized money market fund
A money market fund whose shares are issued or recorded as blockchain tokens, giving holders short-term government yield in an onchain, transferable form.
Also called: Tokenized MMF
A tokenized money market fund is a regulated fund, typically holding Treasury bills, repo and cash, whose shares are represented by tokens. Net asset value is usually held near one dollar per share, with yield paid by accruing value or by issuing additional tokens.
Investors subscribe and redeem through the manager or a tokenization platform, often with stablecoins, and holdings are limited to verified, whitelisted wallets. Depending on design, the token is either the legal share record or a mirror of it maintained by the transfer agent.
These funds bridge cash management and crypto markets: they let treasuries, DAOs and trading firms earn yield onchain and are increasingly accepted as margin collateral. Example: Franklin Templeton’s OnChain U.S. Government Money Fund (BENJI) and BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) are widely cited early examples.
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Part of the BlockWest Glossary, plain-language definitions for markets, AI and digital assets. Educational content, not investment advice.