In September, Calastone hosted our first-ever Connect Forum in the United States, bringing together industry leaders in New York to discuss the rapid evolution of tokenised money market funds and the growing role of blockchain in global finance.
The trend is undeniable. Assets in tokenised vehicles on public chains have soared by 85% since the end of 2024 to exceed $24 billion, and 77% of asset managers now view this opportunity as a strategic imperative, according to a survey conducted for Calastone by ValueExchange (see our white paper for more) .
I opened the day with a line from William Gibson: “The future is already here – it’s just not evenly distributed.” That future isn’t waiting to arrive – it’s already taking shape, and the speakers at our forum are among those driving it forward.
The Tokenised Gold Rush
Over the past few years, we have seen tokenisation move from a promising idea to an increasingly valuable commercial reality, with traction among not just digital innovators, but institutions – both of which were present on our panels in New York.
On-chain assets are soaring, driven by the adoption of tokenised money market funds, which now account for $7.4 billion in AUM. Meanwhile, our own research put the potential operational savings from tokenisation at $135bn, so it’s no great surprise to see the industry reacting accordingly.
High-profile launches like BlackRock’s BUIDL, which surpassed $2.9 billion in under 18 months, show that institutional demand is here to stay. It’s being fuelled by a new type of investor: the digital treasurers in the DeFi ecosystem.
Our research shows that while 80% of these digital investors want to invest in tokenised money market funds, only 25% currently do – simply because there are too few options available.
The question now is what that future looks like.
Notes from the DeFi frontier
Any moment of change brings an inevitable risk of hype and overpromising. So, our first panel brought together Nick Ducoff, Head of Institutional Growth at Solana Foundation, Adam Levine, CEO of the Fireblocks Trust Company and Eric Saraniecki, Co-Founder & Head of Network Strategy at Digital Asset to discuss the real problems blockchain technology can solve, the early limitations of initial product approaches, and the mindset required for long-term success.
A central theme was that the primary benefit of new on-chain finance solutions is the ability to solve deeply familiar issues: how to move assets quickly, cheaply, and with less risk.
The existence of a shared, transparent chain offers a direct path to the long-held industry dream of near-instant settlements without sacrificing security protections. Ducoff explained the concept as a single, 24/7 global liquidity venue; an “unchained NASDAQ” where both traditional and native digital assets can trade seamlessly.
A system like this creates a potential win-win, bringing established financial products to a new blockchain-native audience while also providing a gateway for digital assets to access traditional global markets.
The hype does have its dangers. Saraniecki argued that too much attention has been given to token distribution, while the inefficiencies of the underlying fund structures remain unaddressed. He cited stablecoins as an example: their 24/7 on-chain trading is still dependent on traditional banking hours for minting and redemption. A truly transformational product, he argued, would be a money market fund with a fully tokenised back-end, enabling 24/7 creation, redemption, and repo market integration.
The nature of the chains that will drive this future is still an open question. Levine warned of the risks of buying into a single blockchain, especially one with its own corporate interests. An open future for tokenised funds will require open ecosystems – not new walled gardens.
Mapping the Institutional On-Chain Transition
Our second panel shifted the focus from the builders of the new digital rails to the institutions navigating this transition, welcoming Kim Hochfeld, Senior Managing Director at State Street Investment Management, Bob Cousart, Head of Product at BlackRock Cash Management and Roger Bayston, Head of Digital Assets at Franklin Templeton.
Bayston noted that Web 3.0 digital wallet adoption is outpacing that of the early internet. The client meeting space of the future is increasingly digital, where not only the exchanges, but the assets and the analysis will originate on-chain.
Our conversation highlighted three key use cases accelerating institutional adoption:
- Treasury Management and Distribution – For both digital-native firms and traditional corporates, tokenised funds offer faster, more transparent cash and liquidity management.
- Stablecoin Reserves – Boosted by the passage of the Genius Act, money market funds can now serve as a key reserve asset for stablecoin issuers, including banks.
- Collateral Management – The most compelling use case for value creation. Hochfeld pointed to the 2022 UK Gilts crisis as an example where instant, on-chain transfer of tokenised money fund units could have reduced systemic risk by preventing a “dash for cash.” Tokenisation also introduces new precision tools, such as intraday yield, where interest accrues for the exact seconds an asset is held.
The Time for Collaborative Innovation
The scale of the opportunity means traditional competitive dynamics will have to change. Institutions will need to collaborate to create the network effects that make tokenised funds truly scalable – avoiding the risk of new silos and inefficiency, exactly what tokenisation was designed to eliminate.
The line between digital and traditional assets is blurring fast. With growing regulatory clarity in the US and a wave of live use cases, the groundwork is set for widespread adoption.
As our panelists agreed, within 18 months, a significant number of asset managers will have launched or be developing a tokenised money market fund offering. But not all will be equal. Success will come down to timing, technology, and intent – whether firms rebuild old models with new tools, or embrace genuine fund innovation in an open, tokenised future.
At Calastone, we’re betting on the latter.
