Amundi Launches Tokenized Money Market Fund on Public Ethereum

The French giant, which manages more than €2.3tn ($2.67tn) in assets, said the move allows for a hybrid distribution model where shares can be traded via traditional channels or as digital tokens. The first transaction of the Amundi Funds Cash EUR fund took place on 4 Nov, according to a company statement.

Hybrid distribution 

The project was executed in partnership with CACEIS, the asset servicing group, which provided the transfer agent infrastructure to manage the tokenized units.

Amundi positioned the launch as a play for "younger, crypto-savvy investors," citing benefits including instant order execution, 24/7 operating hours and improved transparency on transaction data.

"The tokenization of assets is a transformation set to accelerate in the coming years around the world," said Jean-Jacques Barbéris, head of institutional and corporate clients at Amundi.

The move follows a similar initiative by UBS in November. The Swiss bank executed a pilot transaction for its own tokenized money market fund using Chainlink’s Digital Transfer Agent standard, signaling a growing consensus among top-tier financial institutions that public blockchains, not just private ledgers, can support regulated fund operations.

Contagion fears

Amundi’s entry into the sector comes as regulators ramp up scrutiny of tokenized money market funds (TMMFs).

In a research bulletin released last week, the Bank for International Settlements (BIS) labeled the $9bn sector a potential "contagion channel" for the broader financial system. The central bank body warned that the mismatch between instant onchain settlement and the slower legacy settlement of underlying assets, such as US Treasuries, creates a "fragile hybrid model" susceptible to runs during stress events.

Amundi addressed the transparency concerns head-on, stating that its use of public Ethereum ensures "transparent record-keeping of fund units and traceability of transactions."