Crypto companies and investors are increasingly channeling funds into tokenised versions of money market and Treasury bond mutual funds as alternatives to stablecoins for parking excess cash while earning yield. This trend reflects growing interest in financial products that merge traditional money market benefits with blockchain efficiencies. Assets in tokenised Treasury products—which include funds converted into digital tokens and newly created token-based instruments—have surged roughly 80% recently, underscoring expanding confidence and demand. These inflows are driven by the search for efficient, cost-effective investment options. Olivier Portenseigne, a sector leader, explains that while stablecoins initially acted as digital cash placeholders, tokenisation now offers a cheaper, faster way to trade and settle these products. The rise of pro-crypto US policymakers has also bolstered market confidence and innovation in digital finance, including tokenised money market funds and Treasury bonds. Tokenisation streamlines and enhances transparency for investors, with blockchain settlements occurring within minutes rather than days, reducing capital needs and lowering operational risks tied to margin payments and clearing. McKinsey & Company projects substantial growth in tokenised funds and securities markets as blockchain matures and institutional adoption rises. Crypto investors seek tokenised Treasury bonds for yield, liquidity, and stability, appreciating their government currency denomination and risk-averse appeal. Tokenised products expose crypto investors to familiar, trusted instruments in a digital, programmable form that is easily tradable, transferable, and integrable with decentralized finance (DeFi) protocols.

Industry analyst Stephen Tu notes that these features improve risk and liquidity management beyond traditional stablecoins. Additionally, new stablecoin variants offering features like constant liquidity and 24/7 trading attract users desiring crypto-native versions of classic money market tools untethered from business hours. Yuval Roo, CEO of Digital Asset, highlights these digital tokens’ critical role in enabling rapid collateral and margin movement across trading desks, pointing to dramatic efficiencies and cost savings from blockchain settlements. Traditional money market funds, often used as collateral for futures, suffer from lengthy redemptions limiting their use in fast trading environments; here, tokenisation’s near-instant settlement offers a more agile solution. Caroline Pham, acting chair of a key regulatory body, calls tokenised funds’ “true killer app” their blend of established instruments’ security with blockchain’s operational efficiency and transparency, while noting wider adoption by traders, custodians, and exchanges is necessary to realize full potential. Market commentator Tony Ashraf acknowledges growing industry understanding but cautions current tokenised bonds lag traditional paper bonds regarding liquidity, regulation, and infrastructure, though he remains optimistic that emerging developments will address these gaps. In summary, the growing investment into tokenised money market and Treasury bond mutual funds marks a significant shift in crypto cash management. By leveraging blockchain technology, these products deliver faster settlements, lower capital demands, and improved operational efficiency relative to stablecoins. Despite challenges in market acceptance and regulatory clarity, momentum behind tokenised financial products indicates they will increasingly bridge traditional finance and digital asset markets in the years ahead.