Tradias, the fintech technology arm of Bankhaus Scheich, has tokenized a money market fund, the Allianz Securicash SRI Fund. A Dutch crypto trading platform has invested in the token as part of its treasury management. Like other tokenized money market funds, the issuance amount will grow over time based on demand. The initial amount was not disclosed.
Bankhaus Scheich is one of the leading market makers on the Frankfurt Stock Exchange, so the issuances use its existing regulatory licenses.
In this case the benefits touted are the ability to trade the token 24/7 and the cost structure. But given it’s currently a one-off token, the question is with whom can it be traded? In the same way that Tradias provides an API and user interface for trading Bitcoin or ETH, it also provides a price for the tokenized money market fund. Additionally, it plans to make the token available via other platforms.
“We’re offering a forward-thinking solution for managing liquidity with tokenized money market funds,” said Michael Reinhard, CEO of tradias. “Investors and individuals investing in cryptocurrencies and digital assets now have the opportunity to manage their liquid funds based on a token while achieving money market equivalent returns.”
Other tokenized money market funds
To date most of the money market funds that have been tokenized on public blockchains are based on U.S. investments. They’ve proven popular given stablecoins don’t pay interest.
For example, there’s Franklin Templeton’s OnChain Government Money fund (market cap of $324m) and Ondo Finance tokenizes the iShares Short Treasury Bond ETF (market capitalization: $113m).
In some ways the tradias tokenization falls between the two. On the one hand, Franklin Templeton is a highly regulated asset manager and Bankhaus Scheich is a regulated bank. In contrast, there’s limited oversight with Ondo Finance. However, Ondo is tokenizing an existing fund that it doesn’t manage, and so is tradias.
The tradias tokenization was on the Polygon blockchain.
