Tokenization of Money Market Funds: A New Era for Institutional and Retail Liquidity Management

The tokenization of financial assets is no longer a speculative concept but a tangible reality reshaping the investment landscape. At the forefront of this revolution is Amundi, the world's largest asset manager, which has launched the first Ethereum-based tokenized money market fund, Amundi Funds Cash Eur. This hybrid product, blending traditional and blockchain-based structures, marks a pivotal moment in liquidity management, offering unprecedented efficiency, transparency, and accessibility. By analyzing Amundi's strategic vision, operational innovations, and market impact, we uncover how tokenization is redefining the future of institutional and retail capital allocation.

Strategic Implications: A Digital-First Vision for Asset Management

Amundi's foray into tokenization is not an isolated experiment but a calculated move to position itself at the intersection of traditional finance and blockchain technology. The firm's Ethereum-based money market fund, launched in collaboration with CACEIS, leverages the Ethereum blockchain to tokenize shares of its Amundi Funds Cash Eur fund, which holds short-term, high-quality euro-denominated debt instruments and overnight repurchase agreements with European sovereigns. This initiative aligns with Amundi's broader strategy to expand its digital asset offerings, including planned Bitcoin-based exchange-traded products (ETPs) and tokenized real-world assets (RWAs) according to market analysis.

The strategic rationale is clear: as institutional and retail investors increasingly demand digital solutions, Amundi is future-proofing its business model. By tokenizing a money market fund-a traditionally low-risk, low-return, and liquid asset class-the firm is demonstrating how blockchain can enhance trust and efficiency in even the most conservative corners of finance. According to a report by Amundi's research division, this move reflects the growing mainstream adoption of cryptocurrencies and tokenized assets, with Ethereum ETFs alone experiencing a 177% quarterly growth in assets under management (AUM) by Q3 2025, reaching $28.6 billion.

Operational Innovations: 24/7 Liquidity and Instant Settlements

The operational benefits of Amundi's tokenized fund are transformative. Unlike traditional money market funds, which operate within standard banking hours and require T+2 settlement cycles, the Ethereum-based version enables 24/7 trading, instant order execution, and real-time settlement. This is achieved through the use of smart contracts, which automate processes such as redemptions, transfers, and yield distribution. For institutional investors, this eliminates counterparty risk and reduces operational overhead, while retail investors gain access to a frictionless, always-on liquidity solution.

The hybrid structure of the fund-offering both traditional and tokenized share classes-further underscores its operational flexibility. (traditional) and the Amundi Funds Cash Eur – J28 EUR DLT (tokenized) variants, depending on their preferences for custody, accessibility, and technological comfort. This dual approach ensures that Amundi can cater to a broad spectrum of clients, from legacy institutions to crypto-native investors.

Collaboration with CACEIS, a subsidiary of Crédit Agricole, has been critical to operational success. CACEIS provided the infrastructure for tokenization, including secure custody solutions and compliance frameworks, ensuring the fund meets regulatory standards while embracing innovation. As of November 2025, the tokenized fund manages €5.7 billion in assets, with a yield of 1.77%-a compelling return in a low-interest-rate environment.

Market-Transformative Impact: Democratizing Access to Institutional-Grade Liquidity

The true disruptive potential of Amundi's tokenized fund lies in its ability to democratize access to institutional-grade liquidity. Historically, money market funds have been dominated by large institutions due to high minimum investments and complex redemption processes. Tokenization breaks these barriers by enabling fractional ownership and seamless onboarding. For example, the 24/7 operability of the fund allows retail investors to deploy capital in real-time, while the transparent, auditable nature of Ethereum's blockchain ensures trust in the fund's holdings.

This shift has broader implications for the asset management industry. By tokenizing a money market fund, Amundi is setting a precedent for how traditional asset classes can be reimagined in the digital era. The firm's success could accelerate the tokenization of other asset categories, from corporate bonds to real estate, creating a parallel financial system built on blockchain. Moreover, the hybrid model bridges the gap between legacy and digital markets, encouraging gradual adoption without forcing investors to abandon familiar structures.

The market response has been overwhelmingly positive. Amundi's total AUM reached a record €2.25 trillion in Q1 2025, driven by strong inflows into its active ETFs and tokenized products. Meanwhile, the firm's plans to launch a Bitcoin-indexed ETF by early 2026 signal its commitment to further integrating crypto into mainstream portfolios. These developments suggest that tokenization is not a niche experiment but a foundational shift in how capital is managed and allocated.

Conclusion: A Blueprint for the Future of Finance

Amundi's Ethereum-based tokenized money market fund is more than a product-it is a blueprint for the future of finance. By combining the stability of traditional money market instruments with the efficiency of blockchain, the firm has created a solution that appeals to both institutional and retail investors. The strategic, operational, and market-transformative implications of this innovation are profound, signaling a new era where liquidity is no longer constrained by geography, time zones, or intermediaries.

As Ethereum ETFs and tokenized assets gain traction, the next frontier will be the widespread adoption of similar models across asset classes. For investors, the message is clear: the future of liquidity management is digital, and Amundi is leading the charge.