Three divisions of Japan’s largest banking group, MUFG, are planning to orchestrate the issuance of a tokenized money market fund (MMF) next year. The issuance will use the Progmat tokenization platform founded by MUFG, in which the bank currently has a 49% stake. At launch the Yen denominated MMF will only be available to institutional investors, but MUFG intends to expand access later.
MUFG Asset Management will act as issuer, and Mitsubishi Trust and Banking will be the trustee of the investment trust and tokenizer. MUFG Morgan Stanley Securities will distribute the tokens. The securities firm has tokenization experience, having recently launched a real estate tokenization offering, ASTOMO, that targets retail investors.
Yen money market funds have not been in demand for the past ten years because Japan had negative interest rates between 2016 and 2024. The base rate has been 0.5% since January and is widely expected to rise to 0.75% this month.
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