Tokenized money market The funds have registered a wave of 80% during the first half of the year and have been the digital asset industry’s fastest growing sector. This increase is now causing concern among the supervisory authorities, with the French central bank that warns that it can threaten financial stability.
In a new one ReportThe Banque de France stated that tokenized MMFs could “create new infection channels for the financial markets.”
One of the bank’s main problems is the interconnection with the digital currency sector. It says that investors in digital currency could buy the tokenized MMFs in periods of high volatility and uncertainty as a hedge. When the market stabilizes, they will probably sell these instruments in mass and lower the value of treasury.
Unlike Legacy Finance, the digital asset market works around the clock all year round. According to the top bank, this introduces a risk of a gap in asset prices and liquidity matching between the two markets, which will now be intricate interconnected through the tokenized MMFs.
If redemption requests for these instruments that were postponed outside the older financial operating hours, the issuer would not be able to liquidate the entire underlying assets, resulting in infectiousness to the broader traditional banking sector.
In addition to infection, these MMFs face the same risks that have plagued the digital asset industry for several years, Banque de France added. This includes limited blockchain interoperabilityFragmented liquidity and a concentration of service providers, who come with its centralization risks.
“Nevertheless, the risks seem to be included at the moment, as the market for Tokenised Money Market Fund remains quite small,” concludes the bank.
But even though the market can be small, it grows aggressively, data shows. According to rwa.xyzTokenized US Treasury is now a market of $ 7.5 billion, an 82% nail just this year.
Banque de France’s concerns about Centralization risks are valid, according to the information, blackrock (Nasdaq: Blk) accounts for $ 2.8 billion in tokenized Treasury, which means 37% of the market. Blackrock has used its influence to further grow its market share; Last month, for example, struck a act with Deribbit and Crypto.com and the two exchange Now accept their tokenized fund as security.
Total, tokenized real assets Is now a market of $ 25.4 billion, with private credit that leads the packaging to $ 14.7 billion. Experts estimate that the market value will double at the end of this year.
Experts believe that tokenized funds will be an even greater market than StablecoinsWhich has now hit $ 260 billion in market cases.
“Stablecoins were the site owner, tokenized money market funds are the real business. Traders are starting to make the transition. Tokenization gives a cheaper and easier way to buy funds and liquidity improves,” commented Olivier Portenseeigne from Clearstream, Europe’s second largest supplier by trade.
McKinsey & Company further Estimates that tokenized funds will be a $ 2 market market in 2030. In comparison, Traditional money market Funds have $ 7 trillion in assets.
The tokenized funds are expanding in addition to the United States to the boundary markets. Last week, Dubai Financial Services Authority (DFSA) approved The region’s first tokenized MMF, which was jointly launched by Qatar National Bank and DMZ Finance.
APAC banks are aimed at AI to increase the return
Somewhere else, banks in Asia-Stilla Sea (APAC) Region invests in Artificial Intelligence (AI) to drive its revenue growth; a Recent report by the consulting company Accenture reveals.
“… over 90% of global bank managers believe that the rate of change has been accelerated over the past six months, and they expect it to accelerate further in the next six months,” said Lead Masashi Nakano, the company’s CEO of APAC.
The report revealed that banks in the region intend to invest at least $ 3 billion in AI over the next three years.
“When banks across Asia continue to navigate the press, such as falling interest rates, they have increasing credit risk and global uncertainties and investigate every growth committee … (AI) is increasingly seen as a driving force for revenue increase,” abandoned Nicole Bodack, the region’s capital markets leads at Accenture.
APAC BANKS expects two -digit revenue increases with Integration of AIshe added.
But while these lenders strive for AI-fulfilled revenues, only a handful is fully prepared to integrate the technology. Accenture says only 10% of the APAC banks are ready to Wave to.
“The 10% leading in the AI assumption have validated specific AI use cases. And most importantly, they have scaled their strategic investments that are most relevant to the industry,” Bodack noted.
See: Tim Draper Talks Tokenization with Kurt Wuckert Jr.
https://www.youtube.com/watch?v=ky-wk2koz3K Title = “Youtube video player” Ramborder = “0” Allow = “Accelerometer; Autoplay; Clipboard Writing; Encrypted Media; Gyroscope; Image-in-Ib Picture; Web Dividend” Reference Policy = “Strict-Origin-When-Cross-Origin” Allowing Lorscreen = “>”
