The Rise of Tokenized Money Market Funds: A New Era in Liquidity and Access

The financial landscape is undergoing a seismic shift, driven by the convergence of blockchain technology and traditional asset management. At the forefront of this transformation is Amundi, Europe's largest asset manager, which has launched its first Ethereum-based tokenized money market fund in collaboration with CACEIS, a leading European asset-servicing firm. This initiative, known as AMUNDI FUNDS CASH EUR - J28 EUR DLT (C), marks a pivotal step in redefining liquidity, access, and efficiency in institutional and retail investing. By leveraging Ethereum's public blockchain, Amundi is not only modernizing fund infrastructure but also democratizing access to financial markets in ways previously unimaginable.

Amundi's Tokenized Fund: Bridging Tradition and Innovation

Amundi's tokenized fund, launched on November 4, 2025, operates on a hybrid distribution model, allowing investors to choose between traditional fund shares and blockchain-based tokens. Both options provide access to the same underlying assets, ensuring flexibility while maintaining regulatory compliance. The collaboration with CACEIS is critical to this model: CACEIS provides the infrastructure for tokenizing fund units, managing digital wallets, and enabling a digital order platform for subscriptions and redemptions. This partnership underscores the importance of trusted custodians in bridging the gap between decentralized technology and institutional-grade security.

The hybrid approach also addresses a key challenge in blockchain adoption-liquidity. By enabling 24/7 settlement capabilities, the fund allows investors to transact in stablecoins or central bank digital currencies (CBDCs) in the future, a feature that could revolutionize how capital is deployed and managed. For institutional investors, this means faster access to liquidity and reduced counterparty risk. For retail investors, it opens the door to real-time participation in markets that were once constrained by traditional settlement cycles.

The Broader RWA Tokenization Boom

Amundi's initiative is part of a broader trend: the explosive growth of Real-World Asset (RWA) tokenization. As of August 2025, the RWA market's Total Value Locked (TVL) reached approximately $26.3 billion, a 223% increase since the beginning of the year. This growth is fueled by institutional adoption, regulatory clarity in jurisdictions like Singapore and the UAE, and advancements in blockchain infrastructure. Excluding stablecoins, the market size has surpassed $27.6 billion, with Ethereum hosting $12.4 billion in tokenized assets-second only to Provenance's $13.9 billion.

The implications for investors are profound. For institutions, tokenization offers a new class of assets with programmable features, such as automated yield distribution and fractional ownership. For retail investors, it democratizes access to high-yield opportunities. Platforms like Ondo Finance and Maple Finance now enable individuals to invest in tokenized treasuries, private credit, and real estate, with yields ranging from 4% to 12% depending on the asset class. These platforms are reshaping the investment landscape by providing diversification and liquidity that traditional markets often lack.

Market Democratization and the Future of Finance

The rise of tokenized money market funds is not just about efficiency-it's about democratizing access. Historically, institutional-grade assets were inaccessible to retail investors due to high minimums, opaque processes, and limited liquidity. Tokenization changes this by enabling fractional ownership and 24/7 trading. For example, a retail investor in Germany can now purchase a tokenized share of Amundi's fund using a stablecoin, bypassing traditional intermediaries and accessing liquidity at any time.

This shift is also driven by regulatory progress. In Europe, the European Securities and Markets Authority (ESMA) has been proactive in creating frameworks for tokenized assets, while the UAE and Singapore have emerged as hubs for RWA innovation. These developments are critical for scaling adoption, as they provide legal certainty for both issuers and investors.

Amundi's Global Ambitions and the Road Ahead

Amundi's success in tokenizing its money market fund is a harbinger of broader institutional adoption. The company's hybrid model has already contributed to the RWA market's expansion from $15.2 billion at the start of 2025 to $37.1 billion by November 27. Jean-Jacques Barberis, Head of Institutional and Corporate Clients, has stated that tokenization is a transformation "set to accelerate in the coming years around the world." With plans to expand these initiatives globally, Amundi is positioning itself as a leader in the RWA space, influencing how both institutional and retail investors access digital assets.

Looking ahead, the potential for RWA tokenization is staggering. Projections suggest the market could reach $9.43 trillion to $18.9 trillion by 2030, driven by the convergence of traditional finance and decentralized infrastructure. This growth will be fueled by innovations in cross-chain interoperability, AI-driven risk management, and the integration of CBDCs into tokenized ecosystems.

Conclusion

The tokenization of money market funds represents a paradigm shift in investment infrastructure. Amundi's collaboration with CACEIS exemplifies how traditional asset managers can harness blockchain to enhance liquidity, reduce friction, and democratize access. As the RWA market continues to grow, investors-both institutional and retail-stand to benefit from a more inclusive, efficient, and transparent financial system. The future of finance is not just digital; it's tokenized.