According to Jinse.com, Fidelity International has joined the tokenized collateral network TCN under JPMorgan Chase, and is working with Onyx Digital Assets to tokenize the stock of money market funds (MMF). Fidelity International said that this move is meant to improve the efficiency of meeting margin requirements and reduce transaction costs and operational risks. Fidelity International also has a long history in the field of digital assets and has been working with Swiss bank Sygnum on tokenization projects as early as 2019. JPMorgan's TCN began with the tokenization of money market stocks, a mutual fund that invests in high-quality short-term debt instruments and cash equivalents. The bank said it plans to expand into stocks, fixed income, and a range of asset classes.

ABRDN, an asset management firm with $626 billion in assets under management, launched an institutional-grade money market fund token in October, according to Golden Finance. Currently, Archax, a cryptocurrency company regulated by the UK's Financial Conduct Authority (FCA), is putting it to work to find new and flexible ways to allocate funds for customers. Simon Barnby, CMO of Archax, said that customer wallets must be whitelisted and that the token is only available to professional investors. But the tokenized portion of the ABRDN fund is selling for just $5,000, which could open up new investor avenues for the product. Early next year, Archax will launch a trading pair for the abrdn Money Market Fund (MMF) token and BTC.

Golden Finance reported that researchers from the New York branch of the Federal Reserve said that stablecoins are very similar to money market funds, which may pose a threat to the broader financial system. A new research report released by the New York Fed finds that stablecoins bear some similarities to money market funds, a type of mutual fund registered with the U.S. Securities and Exchange Commission that seeks to stabilize investments with relatively low risk. price. It is estimated that more than $5 trillion in assets has been invested in money market funds. Like money market funds, stablecoins provide investors with a currency-like asset that is susceptible to runs, and in times of stress there can be a "flight to safety" situation, with investors exchanging them for others they view as less risky. assets. Researchers say these dynamics of runs and flights to safety in stablecoins are similar to those observed in the MMF industry. If stablecoins continue to grow and become more closely linked to key financial markets such as short-term funding markets, they could become a source of financial instability for the broader financial system.