Schroders has received regulatory approval for its first tokenized share class of a US dollar money market fund, representing, the firm says, a significant milestone amid its focus on developing digital investment solutions for its clients.

The firm has secured the green light from the Central Bank of Ireland to launch the fund with a tokenized share class to meet growing client demand for digital asset solutions and enhanced operational efficiency.

With the support of Kinexys by J.P. Morgan’s multi-chain asset tokenization platform, clients will be able to use smart contracts – programmes deployed on a blockchain that execute automatically when set conditions are met – to execute secure and transparent transactions, namely redemptions and transfers.

This enhances the mobility of the money market fund beyond traditional systems enabling transfers among Schroders’ clients and unlocking potential future use cases, such as collateralization and broader 24/7 treasury and liquidity management.

The approval of this tokenized share class underscores Schroders’ commitment to innovating investment solutions. It follows Schroders Capital’s unveiling of the integration of an innovative tokenized capability into its insurance-linked securities investment platform earlier this year.

Schroders has also helped lead the Guardian Asset and Wealth management industry working group, in collaboration with the Monetary Authority of Singapore, to bring industry and regulators together to establish digital asset standards.

“By combining money market investments with the benefits of distributed ledger technology,” says Meagen Burnett, Schroders’ chief financial officer, “we are offering investors a new level of access, efficiency and security.”

Kara Kennedy, Kinexys by J.P. Morgan’s global head of market development, adds: “Tokenized financial infrastructure is no longer theoretical; it’s restructuring liquidity, settlement and digital asset workflows at increasing speed. As demand for tokenized assets grows, tokenized money market funds can help meet investor needs while introducing new features enabled by blockchain technology.”

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