Tokenized Money Market Fund
Shares in a regulated fund holding short-term government debt, recorded as tokens on a blockchain instead of only in a registrar's ledger.
The fund itself is conventional: it holds instruments such as Treasury bills and repurchase agreements, has a manager, an administrator, and a custodian, and is subject to the securities rules of its jurisdiction. Tokenizing the share register lets holders transfer shares between approved wallets outside banking hours and allows the shares to be used as collateral in some venues. Transfer is normally restricted to a whitelist of eligible investors, since the token remains a security, and subscription and redemption still run on the fund's schedule. This is a different instrument from a stablecoin: a fund share carries an entitlement to the fund's return and the protections and restrictions of fund regulation, and it is not designed to circulate as payment.
En pratique
Several asset managers have issued money market fund shares as tokens on public blockchains, with transfers limited to wallets that have completed the fund's onboarding checks.
Le malentendu courant
A tokenized fund share is a regulated security with transfer restrictions, not a freely transferable stablecoin that anyone can accept as payment.