Calastone says 40% of asset managers are targeting tokenised money market funds as digital distribution gains traction.
40% of asset managers are seeking to include tokenised money market funds in their distribution plans according to Calastone’s white paper on tokenised fund distribution in Asia, which examined how asset managers are approaching the opportunity, which products they are bringing to market first, and where practical barriers remain.
The paper said asset managers are increasingly looking at tokenised versions of traditional funds to reach new investor cohorts across decentralised finance, regulated digital platforms and wealth channels. Rather than tokenising the full fund value chain, many are focusing first on the fund unit, allowing them to keep the underlying structure intact while making products compatible with digital distribution.
Tokenised fund distribution is already moving into practice. Nearly three-quarters of asset managers surveyed had at least put a tokenised project in motion. Among those that had launched a tokenised fund, 65% reported benefits over the traditional model, with access to new customers and automation among the most commonly cited advantages.
Calastone projected that the share of asset managers distributing tokenised funds will rise to 13% this year and 28% by 2030. It also estimated that assets under management in tokenised funds could grow from US$4 billion in 2024 to US$235 billion by 2029.
Money market funds are seen as a natural starting point because they combine liquidity, lower-risk exposure and yield with features that are useful in digital asset markets, including wallet integration, improved transparency and the ability to purchase using stablecoins.
Demand from DeFi platforms is also supporting the case for tokenised money market funds. Among the DeFi platforms surveyed, eight in 10 said tokenised money market funds could improve treasury management, while three-quarters viewed them as a tool for client retention. Half expected to increase their tokenised holdings by at least 25% within five years.
Asset managers are also favouring a partner-led distribution model. Calastone said 70% of respondents identified technology partners as a Day 1 priority, while the same share planned to distribute through intermediaries. Digital fund distribution platforms and digital exchanges were the preferred routes, ahead of going directly to investors or relying on captive sales forces.
In Asia-Pacific, however, the main challenge is not only product availability. Calastone said 86% of APAC respondents viewed building an ecosystem around tokenised solutions as a blocker, compared with a global average of 34%. Interoperability across blockchain networks was also a larger concern in APAC, cited by 57% of firms compared with 28% in Europe or North America.
The findings suggest tokenised money market funds may be an early test case for digital fund distribution. However, wider adoption in Asia will depend on whether asset managers can connect to established networks, support multiple payment rails and distribute across fragmented blockchain ecosystems.
Read the report here.
Stay updated on crypto and AI by following our socials
