Axiology & VIALET launch tokenised funds for safeguarding

channellife.co.ukPublished by source: Added to RWA Signal: 4 min read
Axiology & VIALET launch tokenised funds for safeguarding
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RWA Signal Insight

Infrastructure

Axiology has partnered with VIALET to integrate tokenized money market funds into the electronic money institution's client fund safeguarding and corporate treasury management processes. VIALET, which manages approximately €150 million in assets, will utilize Axiology's regulated DLT Trading and Settlement System to diversify its holdings beyond traditional bank accounts and government bonds. A critical component of this arrangement is the inclusion of an eligible liquidity provider, which enables VIALET to access cash intraday without altering the underlying redemption terms of the money market funds. This solution addresses the operational challenge of maintaining liquidity for daily settlements while adhering to strict regulatory requirements for safeguarding client balances. The partnership highlights the growing institutional adoption of tokenized assets, with the global market for such funds reaching roughly €7 billion by February 2026. By operating under the EU DLT Pilot Regime, the collaboration ensures that these digital financial instruments remain compliant with European regulatory standards. This development marks a significant step in proving that tokenized assets can provide both yield and operational flexibility for payment institutions.

Key points

  • Axiology and VIALET partner to use tokenized money market funds for client fund safeguarding.
  • VIALET manages €150 million in assets and processed €6 billion in payment volume annually.
  • Intraday liquidity provider allows VIALET to access cash without changing fund redemption terms.
  • Global tokenized money market fund market grew 110% to €7 billion by February 2026.

Background

Axiology operates a regulated DLT Trading and Settlement System under the EU DLT Pilot Regime, which allows financial institutions to test blockchain-based infrastructure for trading and settling financial instruments. VIALET is a Lithuanian-based electronic money institution licensed by the Bank of Lithuania that provides payment accounts, card services, and international transfers for businesses. Electronic money institutions are legally required to safeguard client funds by segregating them from their own balance sheets, typically using bank deposits or high-quality government bonds.

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