A Funds Europe expert panel discuss money market fund tokenisation and hears that, while the technology underpinning tokenisation is no longer experimental, its integration into the everyday machinery of fund management remains uneven.
Tokenisation is slowly reshaping the asset management landscape, particularly in money market funds (MMFs). This means the road to 2030 is beginning to take form. While the technology underpinning tokenisation is no longer experimental, its integration into the everyday machinery of fund management remains uneven. Critics would say it is hampered by legacy systems, entrenched operational models, and a steep investment curve.
Despite its early billing as a cost-cutting revolution, tokenisation has yet to deliver on that promise across the full value chain. The theoretical savings exist, but practical realities have slowed their arrival. Simon Keefe of Calastone said that while the technologies and models are “absolutely there” to make it happen, the efficiencies haven’t materialised across the board. Calastone – after investing heavily
in backend infrastructure and processes in order to increase efficiencies for market actors – realised that tokenisation’s distribution potential was more important for its asset-manager clients.
The Funds Europe expert panel discussion also features Anna Matson, head of digital assets and innovation, Emea, Northern Trust, and Veronica Iommi, secretary general, Institutional Money Markets Funds Association.
