Coinbase Asset Management Department rumored to launch tokenized money market fund

According to four informed sources cited by CoinDesk, Coinbase Asset Management, the asset management division of the US cryptocurrency exchange Coinbase, is creating a tokenized money market fund. Two of the individuals stated that Coinbase Asset Management has been collaborating with Apex Group, headquartered in Bermuda, to help facilitate its tokenization fund.

Apex's business covers custody, management, depositary, and fund management, managing over $3 trillion in assets. Coinbase acquired One River Digital Asset Management in March 2023, thus establishing Coinbase Asset Management. For the company, the launch of a tokenized money market fund will represent further expansion into the tokenization field.

Tokenization, which represents the ownership of real-world assets (RWA) through products based on memory blockchain, has become a major trend in recent cryptocurrencies. For investors, tokenized funds offer many potential benefits, including transparency provided by in memory blockchain associated assets and the possibility of higher liquidity. For issuers, there is potential to improve efficiency.

The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), issued by asset management company BlackRock in March this year, has become the largest tokenized bond fund with a market value of nearly $520 million.