Schroders, a global leader in active asset management, announces it has received regulatory approval for the firm’s first tokenised share class of a US dollar money market fund, representing a significant milestone amid its focus on developing digital investment solutions for its clients.

The firm has secured the green light from the Central Bank of Ireland to launch the fund with a tokenised share class (SOAR: Schroders Onchain Active Returns), meeting growing client demand for digital asset solutions and enhanced operational efficiency.

With the support of Kinexys by J.P. Morgan’s multi-chain asset tokenisation platform, clients will be able to use smart contracts – programs deployed on a blockchain that execute automatically when set conditions are met – to execute secure and transparent transactions, namely redemptions and transfers. This enhances the mobility of the money market fund beyond traditional systems, enabling transfers amongst Schroders’ clients and unlocking potential future use cases such as collateralisation and broader 24/7 treasury and liquidity management.

The approval of this tokenised share class underscores Schroders’ commitment to innovating investment solutions. It follows Schroders Capital’s unveiling of the integration of an innovative tokenised capability into its insurance-linked securities (ILS) investment platform earlier this year.

Schroders has also helped lead the Guardian Asset and Wealth management industry working group, in collaboration with the Monetary Authority of Singapore, to bring industry and regulators together to establish digital asset standards.

Meagen Burnett, Chief Financial Officer, Schroders said:

“For more than two centuries we have navigated social, economic and technological change to deliver excellent long-term investment outcomes for our clients.

“By combining money market investments with the benefits of distributed ledger technology, we are offering investors a new level of access, efficiency and security. This milestone is a testament to our commitment to developing world-class solutions that meet the evolving needs of investors in the digital age, and is a pivotal step forward for Schroders, as we move towards our vision of delivering a composable finance ecosystem for our clients.”

Kara Kennedy, Global Head of Market Development, Kinexys by J.P. Morgan said:

“Tokenised financial infrastructure is no longer theoretical; it’s restructuring liquidity, settlement and digital asset workflows at increasing speed. As demand for tokenised assets grows, tokenised money market funds can help meet investor needs while introducing new features enabled by blockchain technology. We remain committed to helping the industry at large evolve solutions that lower barriers to entry and add value through new on-chain functionality.”

The Ireland domiciled fund will draw on the strong experience of Neil Sutherland, Head of US Fixed Income and Portfolio Manager at Schroders, as well a range of credit specialists.

Kinexys by J.P. Morgan is the firm’s industry-leading blockchain business unit and part of J.P. Morgan Payments. Its multi-chain asset tokenisation solution enables investors to interact with the fund on distributed ledger technology, and offers them access to the operational benefits of a secure, efficient and transparent investment vehicle designed for today’s evolving financial landscape. The platform acts as the translation layer between on-chain activity and the fund’s transfer agent.

Source: Schroders