Europe’s top asset manager, Amundi, has unveiled its inaugural tokenized share class for a euro-denominated money market fund, powered by the Ethereum blockchain.
This launch enables the fund to operate in a hybrid format, offering both traditional and blockchain-based share classes.
According to a press release, the first on-chain transaction went live on the Ethereum network on November 4, marking a key step in Amundi’s efforts to modernize fund operations.
CACEIS collaborated on the initiative, supplying the tokenization infrastructure, tools for managing investor wallets, and a digital platform to handle investment subscriptions and withdrawals.
Both firms stated that tokenization can streamline order flows, broaden investor access, and enable 24/7 trading. These advantages, in turn, align closely with the growing expectations of digital-first investors.
Conservative Portfolio Backed by Short-Term Euro Debt
Although the fund debuts with a modern distribution model, it continues to follow a conservative investment approach. Amundi reports that its holdings consist of short-term, top-tier euro-denominated debt. These holdings feature money market instruments and overnight repurchase agreements backed by European sovereigns.
The Paris-based firm oversees around €2.3 trillion in assets and offers financial services to over 100 million individual clients, according to its website.
Global Asset Managers Accelerate Tokenized Fund Adoption
Amundi’s move comes as global asset managers intensify their push into tokenized markets.
For instance, data from RWA.xyz shows that BlackRock’s on-chain money market vehicle now holds $2.31 billion in tokenized assets. Franklin Templeton’s fund manages more than $826.61 million.
Both companies are also broadening their blockchain footprints. Earlier this month, Franklin Templeton joined the Canton Network, a permissioned blockchain ecosystem for regulated financial institutions.
Meanwhile, BlackRock has added support for Polygon, Arbitrum, Aptos, Avalanche, and Optimism, thus expanding investor access beyond Ethereum.
BIS Warns of Potential Risks Amid Rapid Growth
A recent Bank for International Settlements (BIS) bulletin reported that tokenized money market funds reached $9 billion by the end of October. This represents a substantial increase from approximately $770 million at the end of 2023.
However, the BIS warned that the growing use of tokenized Treasury portfolios as collateral could introduce new operational and liquidity risks to the markets.
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