The infrastructure leading asset managers and institutional investors trust to issue, manage, and deploy tokenized money market fund shares.
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Tokenized money market funds are fund shares recorded on a distributed ledger that earn yield while serving as programmable on-chain collateral, moving between counterparties, or settling against other tokenized assets.
Traditional money market fund shares cannot be posted as collateral without manual custodian processes and T+1 settlement cycles, leaving yield idle while the position is locked. Tokenization removes that constraint, enabling yield-bearing collateral posting, same-day redemption, and programmatic fund lifecycle management.
Kaleido provides the full infrastructure stack for tokenized money market fund programs, covering fund share issuance, investor access controls, on-chain collateral workflows, and integration with existing fund administration infrastructure.
Live deployments across commercial banks, central banks, and financial market infrastructures worldwide.
Tokenized money market funds are digital representations of money market fund shares issued and recorded on a distributed ledger. They carry the same yield and liquidity characteristics as traditional money market fund shares and remain subject to the same fund regulation in each jurisdiction. The tokenization layer adds programmability and on-chain transferability, enabling shares to be posted as collateral, transferred between counterparties, and managed through automated workflows without manual custodian intervention.
Tokenized money market fund shares work as collateral without the custody transfer that traditional markets require, a transfer that takes time and removes the shares from the holder's yield-earning position.
Tokenized money market fund shares can be locked in a smart contract as collateral while remaining on the holder's ledger account, continuing to earn yield throughout the collateral period. When the collateral obligation is satisfied, the shares are released programmatically without manual custodian instructions.
Tokenized money market fund redemption can settle the same day, while traditional MMF redemption typically settles on a T+1 basis, requiring a redemption instruction to the transfer agent, NAV calculation at end of day, and cash settlement the following business day.
Tokenized money market fund programs can enable same-day redemption by coordinating the on-chain share transfer with digital cash settlement in a single workflow, giving investors faster access to liquidity than traditional fund administration allows.
Tokenized money market fund shares are yield-bearing regulated fund securities, while stablecoins are payment instruments backed by reserves held to maintain a peg. Stablecoins are issued by payment institutions and backed by segregated reserve assets held for the purpose of maintaining the peg.
Tokenized money market fund shares are regulated fund securities issued by licensed asset managers, backed by a diversified portfolio of short-term instruments, and subject to fund regulation in each jurisdiction. Tokenized money market fund shares earn yield from the underlying portfolio.
Stablecoins generally do not pass yield to holders. For institutional collateral purposes, tokenized money market fund shares are preferred because they are yield-bearing and classified as securities rather than payment instruments.
Tokenized money market fund shares are regulated securities subject to existing fund regulation in each jurisdiction. For example, in the United States, money market funds operate under SEC Rule 2a-7 under the Investment Company Act. In Europe, MMFs are regulated under the EU Money Market Fund Regulation (MMFR) and distributed under UCITS or AIFMD frameworks. Singapore regulates money market funds under MAS oversight. Tokenization does not change the underlying fund's regulatory status. It adds an on-chain distribution and transfer layer subject to any applicable securities and digital asset regulations in each jurisdiction.
Many tokenized money market fund programs require permissioned infrastructure where the fund manager and authorized participants control network access. Kaleido supports private permissioned chains built on Besu and Canton, with configurable validator sets and participant access controls. For those who want to tokenize on public chains, this is fully supported as well.
For programs requiring interoperability across multiple custodians or fund participants, Kaleido's Interop Hub handles cross-chain connectivity. Kaleido has supported live fund tokenization deployments across multiple jurisdictions with global asset managers and financial market infrastructures.
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Kaleido's Interop Hub connects on-chain fund share operations to existing transfer agent systems, custodian networks, and fund reporting infrastructure via 1,000+ platform APIs and ISO 20022-compatible messaging. Share issuance and redemption events trigger corresponding entries in the fund's transfer agent records. NAV and distribution data flows through existing fund administration systems. Every on-chain event reconciles against off-chain records in real time, maintaining an auditable link between the tokenized layer and existing fund infrastructure.
See the Interop Hub page →
