Schroders gets Irish nod for tokenised money market fund
Stablecoins
Schroders has secured approval from the Central Bank of Ireland to launch a tokenised share class within its US dollar money market fund, marking the firm's first foray into this specific asset class. Known as Schroders onchain active returns (SOAR), the product leverages Kinexys by J.P. Morgan to facilitate blockchain-based transactions, including redemptions and transfers via smart contracts. This initiative aims to enhance operational efficiency and address growing client demand for digital asset integration within traditional finance. By utilizing distributed ledger technology, the fund seeks to move beyond conventional settlement systems, potentially enabling future capabilities like 24/7 treasury management and collateralisation. The project is managed by Neil Sutherland and credit specialists, reflecting Schroders' broader strategy to build a composable finance ecosystem. This development follows the firm's earlier work with tokenised insurance-linked securities and its participation in digital asset standard-setting groups. The move underscores the accelerating institutional adoption of tokenised financial infrastructure to streamline liquidity and settlement workflows.
Key points
- ▸Schroders received Central Bank of Ireland approval for its tokenised SOAR money market fund.
- ▸Kinexys by J.P. Morgan provides the multi-chain infrastructure for smart contract-based transactions.
- ▸The fund enables automated redemptions, transfers, and potential future 24/7 liquidity management.
- ▸This launch follows Schroders' previous tokenisation of insurance-linked securities earlier this year.
Background
Schroders is a global investment management firm with over two centuries of history, managing assets for institutional and retail clients. Money market funds are low-risk investment vehicles that hold high-quality, short-term debt securities, typically used by investors to preserve capital while earning interest. Tokenising these funds involves representing ownership shares on a blockchain, allowing for programmable, near-instant settlement and increased operational transparency.
Relevance
8.5/10