
Tokenized Money Market Fund: How Onchain Yield Works
Tokenized money market funds represent a shift in financial plumbing by migrating traditional share registries from private transfer agent ledgers to blockchain-based tokens. These funds primarily hold short-term government debt, cash, and repos, allowing investors to earn yield on idle capital while maintaining on-chain liquidity. Key industry examples include BlackRock's BUIDL, which targets institutional investors with a $5 million minimum, and Franklin Templeton's BENJI, which offers broader access to retail investors. By utilizing smart contracts, these assets enable 24/7 transferability and near-instant settlement compared to the traditional one-day banking cycle. The integration of these tokens into the crypto ecosystem allows them to serve as collateral and efficient treasury management tools for DAOs and stablecoin issuers. While the sector has grown into the billions, it faces challenges including liquidity mismatches, regulatory access restrictions, and inherent smart-contract risks. Ultimately, the adoption of these funds signals a broader institutional push to modernize cash management through programmable, transparent blockchain rails.








