Tokenized Money Market Funds: The Next Frontier in 24/7 Global Liquidity Management

The financial industry is at a crossroads, where blockchain technology is no longer a speculative experiment but a foundational tool for redefining asset management. Tokenized money market funds, in particular, are emerging as a critical innovation, enabling 24/7 liquidity, instant settlement, and seamless integration with digital assets. At the forefront of this shift is Amundi, Europe's largest asset manager, which in November 2025 launched the first tokenized share class of its AMUNDI FUNDS CASH EUR money market fund on the Ethereum blockchain. This move, executed in collaboration with CACEIS, marks a pivotal moment in the convergence of traditional finance and decentralized infrastructure, demonstrating scalable infrastructure, regulatory alignment, and robust investor demand.

Blockchain-Enabled Infrastructure: Scalability and Operational Efficiency

Amundi's tokenized fund leverages Ethereum's public blockchain to offer 24/7 trading and instant settlement, a stark departure from the traditional T+2 or T+1 settlement cycles. By tokenizing a €5 billion money market fund, Amundi and CACEIS have created a hybrid model where investors can choose between traditional fund shares and blockchain-based tokens, both backed by the same high-quality, short-term euro-denominated assets according to a press release. The infrastructure, built on CACEIS's digital portfolio solutions, includes 24/7 subscription and redemption services, digital wallets for investors, and a blockchain-based order processing system as reported by industry analysis.

This innovation is not just about speed-it's about scalability. Ethereum's role in real-world asset (RWA) tokenization has been pivotal, with a report indicating $105.94 billion in RWA transactions recorded on the network in the past month alone. Amundi's fund is part of a broader trend: by late November 2025, the global RWA tokenization market had surged from $15.2 billion to $37.1 billion, with data showing Ethereum hosting 64% of tokenized assets. The ability to execute trades at any time, in any timezone, positions tokenized money market funds as a cornerstone for global liquidity management.

Regulatory Alignment: Bridging Traditional and Digital Finance

Amundi's initiative is notable for its regulatory compliance, a critical hurdle for institutional adoption. As a major European asset manager, Amundi operates under stringent EU regulations, and its tokenized fund adheres to the same standards as its traditional counterparts. The hybrid model ensures that both tokenized and traditional shares are subject to identical risk management, transparency, and investor protection frameworks as confirmed by industry sources. This alignment is crucial for institutional investors, who require certainty in legal and operational frameworks before allocating capital to digital assets.

CACEIS, as the technological partner, plays a dual role: it not only provides the infrastructure for tokenization but also ensures compliance with regulatory requirements such as anti-money laundering (AML) and know-your-customer (KYC) protocols as detailed in a press release. This partnership underscores a broader industry trend: traditional financial institutions are no longer viewing blockchain as a disruptive force but as a complementary tool to enhance existing systems.

Investor Demand: A New Era of Liquidity and Accessibility

The launch of Amundi's tokenized fund has already shown strong investor interest, even without granular AUM figures for the product itself. According to Q3 2025 results, by Q3 2025, Amundi's total assets under management (AUM) had reached a record €2,317 billion, with €15 billion in net inflows during the quarter. While specific metrics for the tokenized fund are not yet public, industry analysis suggests that the broader growth of RWA tokenization-up 144% year-to-date-suggests that investors are increasingly prioritizing liquidity and flexibility.

The fund's hybrid distribution model is a strategic win. Traditional investors can access the fund through familiar channels, while a new generation of digital-native investors can engage via tokenized shares, redeemable in stablecoins or central bank digital currencies (CBDCs). This dual approach expands Amundi's addressable market, particularly as institutional investors seek to integrate tokenized assets into their portfolios. The first transaction on November 4, 2025, was a signal of intent: the fund's underlying assets-short-term European government bonds and overnight repurchase agreements-offer the safety and yield that money market funds are known for, now augmented by blockchain's efficiency.

Strategic Implications for Investors

Amundi's Ethereum-based tokenization is more than a technical achievement-it's a harbinger of a larger shift. Tokenized money market funds are poised to become the default vehicle for global liquidity management, offering advantages that traditional systems cannot match. For investors, this means:
1. 24/7 Access: Liquidity is no longer constrained by market hours or geographic boundaries.
2. Instant Settlement: Reduces counterparty risk and operational friction.
3. Scalable Infrastructure: Ethereum's robust ecosystem supports seamless integration with DeFi protocols and cross-border transactions.

Moreover, Amundi's move signals that institutional players are no longer on the sidelines. As one of the largest asset managers in the world, Amundi's adoption of tokenization validates the technology's readiness for prime time. This is a critical inflection point: when major institutions begin to tokenize their assets, it creates a flywheel effect, attracting more capital, more innovation, and more regulatory clarity.

Conclusion: The Future of Liquidity is Tokenized

The launch of Amundi's tokenized money market fund is a watershed moment. It demonstrates that blockchain technology can scale to meet the demands of institutional finance while adhering to regulatory standards. For investors, the implications are clear: tokenized money market funds are not a niche experiment but a strategic asset class that will redefine liquidity management in the 2020s.

As the RWA tokenization market continues to grow, Amundi's collaboration with CACEIS sets a blueprint for others to follow. The next frontier is not just about tokenizing assets-it's about reimagining how capital moves in a 24/7, global economy.