Schroders (AUM £867bn / $1.17trn) has received approval from the Central Bank of Ireland to issue a tokenized share class for a US dollar money market fund (MMF), which it is calling Schroders Onchain Active Returns (SOAR).
The asset manager is partnering with JP Morgan’s Kinexys for the tokenization, and JP Morgan is the existing transfer agent for Schroders Funds ICAV. The plan is for a digital twin share class rather than natively digital. Using JP Morgan as transfer agent and tokenization partner is similar to the BlackRock Irish UCITS funds announcement earlier this week.
Schroders described the move as supporting the transfer of the MMF units between its clients, highlighting future use cases including collateralization and 24/7 treasury and liquidity management. “By combining money market investments with the benefits of distributed ledger technology, we are offering investors a new level of access, efficiency and security,” said Meagen Burnett, Chief Financial Officer, Schroders.
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