A new BIS Bulletin, “The rise of tokenised money market funds,” makes one thing clear: tokenised money market funds (TMMFs) are emerging as onchain cash management—they move like stablecoins, pay money-market yield, and bring securities-grade compliance onto public blockchains. The winners won’t be “who has the best token,” but who can operate the full stack: onboarding, allow listing, transfer controls, mint / burn, and redemption workflows—reliably.
1. Stablecoin distribution + securities controls. TMMFs circulate on-chain like money, but they’re legally fund shares (securities). That means wallet allow-lists, eligibility checks, and enforceable transfer restrictions are foundational—not optional.
2. Token standards are the control plane. This isn’t “ERC-20 and vibes.” Institutional tokenization needs standards that encode policy: who can hold, who can transfer, what happens on exceptions. The BIS highlights architectures consistent with ERC-1400 / ERC3643-style permissioning—built for regulated issuance.
3. Redemption is the real stress test. Minting is easy. The hard part is burn-to-cash redemption, especially when settlement is offchain and demand is on-chain. Liquidity mismatch, cutoff times, and operational controls define whether these products scale safely.