A consortium of 30 financial institutions, including BlackRock, State Street, UBS, Deutsche Bank, and HSBC, participated in a pilot project to test tokenized money market fund collateral, as reported by Global Digital Finance (GDF). The initiative involved legal research and simulation testing across Europe, focusing on the UK, Ireland, and Luxembourg. The study highlighted that 68% of current collateral is delivered in cash, suggesting that tokenization could enhance liquidity and ease asset liquidation pressures, similar to those experienced during the 2022 UK gilt crisis.
BlackRock and 29 Firms Test Tokenized Money Market Fund Collateral
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