Amundi, Europe's biggest asset manager overseeing €2 trillion in assets, has launched its first tokenized euro money market fund on the Ethereum blockchain. The innovative hybrid approach allows investors to select between traditional fund shares and blockchain-recorded tokens, marking a significant step toward mainstream institutional adoption of digital asset infrastructure.
In a groundbreaking development for institutional crypto adoption, Amundi has officially brought its euro money market fund onchain, offering investors the choice between conventional shares and tokenized versions recorded on the Ethereum blockchain.
The Paris-based asset management giant, which manages approximately €2 trillion in assets, is taking a measured approach with its hybrid rollout. Rather than forcing an all-or-nothing transition, the firm is enabling clients to opt for either the traditional fund structure they're familiar with or embrace the blockchain-based alternative, reducing barriers to entry for more conservative institutional investors.
This strategic move positions Amundi at the forefront of the tokenization trend that's rapidly gaining momentum in traditional finance. By selecting Ethereum as the underlying infrastructure, the company has chosen the most established smart contract platform, which currently hosts the majority of tokenized real-world assets.
The tokenization of money market funds offers several potential advantages over traditional structures. Blockchain-based shares can enable faster settlement times, potentially reducing the standard T+2 settlement cycle to near-instantaneous transfers. Additionally, tokenized funds can provide enhanced transparency through immutable blockchain records and may unlock new liquidity opportunities through 24/7 trading capabilities.
Amundi's initiative arrives amid surging institutional interest in tokenized financial products. Major players including BlackRock, Franklin Templeton, and Fidelity have already launched tokenized money market funds, collectively representing hundreds of millions in assets under management. However, Amundi's European perspective and massive scale could accelerate adoption across the continent.
The timing is particularly noteworthy as European regulators have implemented comprehensive crypto frameworks through the Markets in Crypto-Assets (MiCA) regulation, providing greater legal clarity for tokenized securities. This regulatory certainty has emboldened traditional financial institutions to explore blockchain solutions more aggressively.
Industry observers view Amundi's move as validation that tokenization is transitioning from experimental technology to mainstream financial infrastructure. As more major asset managers offer blockchain-based products, the pressure increases on competitors to develop similar capabilities or risk appearing technologically outdated.
The success of this hybrid model could serve as a blueprint for other traditional financial institutions seeking to bridge the gap between conventional finance and blockchain innovation without alienating their existing client base.