Tokenised money market funds: new technology, familiar risks?

Alexandra Born, Michael Grill, Claudia Lambert, Vanessa Schöller, David Staunton and Anna Tskhakaya

Macroprudential Bulletin, 2026, vol. 33

Abstract: The market for tokenised money market funds (TMMFs) – money market funds (MMFs) whose shares are issued as tokens on distributed ledgers – remains small but is expanding rapidly. This article explores the specific design features of TMMFs, including the tokenisation of their underlying assets, liabilities and operational processes. It analyses key economic differences between TMMFs and traditional MMFs, with a particular focus on their implications for financial stability. Tokenisation has the potential to enhance efficiency by enabling faster settlement together with near-24/7 availability and programmability, while unlocking new use cases, such as employing TMMF tokens as collateral. However, TMMFs could also amplify risks related to liquidity mismatches and operational fragilities. A dedicated box in this article compares TMMFs with stablecoins, assessing their financial stability implications and interlinkages. Ultimately, the net financial stability impact of TMMFs will depend on how the market evolves, how it will affect prevailing business models and how it will integrate and interact with traditional financial markets. JEL Classification: G23, G28, G32, O33

Keywords: liquidity risk; operational risk; stablecoins; Tokenised money market funds (search for similar items in EconPapers)
Date: 2026-04
Note: 1280809
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