VanEck is the latest asset manager to launch a tokenized treasury fund, the VanEck Treasury Fund (VBILL) with Securitize as its partner for tokenization, fund administration and transfer agency. Securitize is also BlackRock’s partner for its BUIDL money market fund. “By bringing U.S. Treasuries on-chain, we are providing investors with a secure, transparent, and liquid tool for cash management, further integrating digital assets into mainstream financial markets,” said Kyle DaCruz, Director of Digital Assets Product at VanEck. “Tokenized funds like VBILL are enhancing market liquidity and efficiency, underscoring our commitment to providing value to our investors.”
The British Virgin Island fund targets institutional and qualified investors with minimum subscriptions starting at $100,000 for investments on Avalanche, BNB Chain, and Solana, and $1,000,000 on Ethereum. Most demand for tokenized money market funds comes from within the digital asset community, especially stablecoin issuers looking to use tokenized assets for their reserves. For example, just two stablecoin issuers (Sky and Ethena) account for $2.1 billion or 72% of BlackRock’s BUIDL fund.
However, with the change of US government, the Commodities Futures Trading Commission (CFTC) has announced pilots for tokenized collateral, and the CME is testing the use of blockchain. That has the potential to substantially increase the demand for the assets. The table below provides a snapshot of some of the traditional asset managers offering tokenized funds, although there are several startups offering funds, including Ondo Finance, Superstate and Circle (Hashnote) leading the pack.
