A tokenized money market fund is a tokenized fund that holds the classic money-market mix - cash, short-term government debt, and repurchase agreements - with its shares issued as blockchain tokens. It pays yield close to money-market rates, keeps a stable value near $1, and settles on-chain. In practice it overlaps heavily with a tokenized Treasury: both aim for safe, cash-like yield. The distinction is that a money-market fund can hold a slightly broader set of short-term instruments, and it is specifically a registered fund structure.

What's inside

A money-market fund holds very short-term, high-quality instruments: Treasury bills, government repo, and cash. Tokenizing it means issuing tokens that represent shares of that fund, with ownership recorded on a blockchain. Your stake is valued by the fund's net asset value, which stays near a dollar because the holdings are so short-dated and safe.

The result behaves like a yield-bearing dollar: stable in value, paying interest, and transferable on-chain at any time.

How it pays and how it's valued

The fund earns interest on its holdings and passes it to token holders - either as additional tokens or through a value that ticks up over time.

Because the assets are short-term and conservative, the yield tracks prevailing money-market rates, which move with the Fed. Expect something close to what a tokenized Treasury pays, give or take the exact holdings and fees. This is a stability-and-yield product, not a growth one.

Money-market fund vs stablecoin

The comparison that matters most for beginners is against a plain stablecoin. A stablecoin holds a steady dollar and pays you nothing; a tokenized money-market fund holds a steady dollar and pays you yield. The trade-off is that the fund is a regulated investment with eligibility and redemption rules, whereas a stablecoin is a payment instrument you can move freely.

If you want to spend and settle, hold a stablecoin. If you want your idle dollars to earn while staying cash-like, a tokenized money-market fund (or tokenized Treasury) is the tool.

Who it suits

It fits investors who want the lowest-risk yield in the RWA space with a fund wrapper - treasurers parking on-chain cash, or individuals who want a stable, yield-bearing dollar. It is not where you chase high returns; it is where you hold value safely between other investments. For the closely related, Treasury-specific version, see tokenized Treasuries.

What this looks like with real products

The biggest tokenized products on-chain today are, in effect, money-market funds. Franklin Templeton's BENJI is the clearest example: it tokenizes shares of the Franklin OnChain US Government Money Fund (FOBXX), a registered US government money-market fund that has recorded ownership on a public blockchain since April 2021. It carries a management fee around 0.20% and a minimum near $20, and its yield has tracked short-term US rates - in the mid-3% range through 2026 as the Fed held rates well off their lows.

BlackRock's BUIDL is the institutional counterpart, holding cash, Treasuries, and repo, and it grew past $1 billion in its first year to become the largest fund of its type - but it carries a roughly $5 million minimum, so it is not a retail product. The pattern across both is the point: the money that has actually moved on-chain went to the safest, most liquid fund structures first, which is why this category, not exotic assets, leads the RWA market by value.

Where to go next

• Next: how to invest in tokenized private credit.
• The close cousin: tokenized Treasuries.
• Glossary: tokenized fund.

Sources: rwa.xyz; U.S. SEC (sec.gov), as of 2026.