Galaxy Digital plans a tokenized money market fund, according to reports. The move could intensify competition with managers like BlackRock and Franklin Templeton and may affect investors depending on market response. News outlets reported the plan and its potential industry impact.
Context and impact
The press release states that Galaxy Digital aims to deploy the tokenized vehicle across multiple blockchains — including Ethereum, Solana, and Stellar — to broaden access and reduce dependence on a single system. Galaxy previously tokenized its GLXY shares on Solana, using this as a test to explore liquidity and near‑instant settlement dynamics.
Tokenizing money market funds promises process automation, lower operating costs, and fractional ownership. Data from the report cites that tokenized products linked to Treasuries and MMFs grew 80% in 2025 to about $7.4 billion. A report by BCG or ADDX projects the tokenized market could reach $16 trillion by 2030, which, if realized, would drive company adoption and reshape traditional liquidity channels.
Galaxy Digital’s entry would heighten competition in tokenization and could accelerate offerings with near‑immediate settlement. This may influence corporate treasury management and interoperability between digital and traditional markets, while broad adoption will hinge on regulatory progress and managing technology risks.
Regulation and compliance
Tokenization converts fund holdings into transferable digital tokens on a DLT, enabling programmatic controls and faster operations. A multi‑chain approach deploys the product on several networks to spread infrastructure risk and expand distribution channels.
The initiative unfolds amid uncertain rules. The piece from Jina emphasizes unresolved issues around investor protection, KYC/AML compliance, and cross‑border agreement, which limit the speed of adoption and introduce operational and legal risks for participants and distributors.
The note underscores the need for clear, harmonized regulation. Priority topics include mitigating smart contract failure risks, strengthening investor safeguards, and meeting KYC/AML requirements for on‑chain platforms. Lack of cross‑country alignment could constrain traditional distributors’ ability to integrate these products at scale.
CoinDesk’s report signals a shift from experimentation to commercial proposals in tokenized money market funds. The ultimate impact will depend on market acceptance and the evolution of applicable rules.
