Coinbase Asset Management Plans Tokenized Money-Market Fund, a Hot Area After BlackRock's BUIDL Success: Sources

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Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.

Coinbase Asset Management is creating a tokenized money-market fund, according to four people familiar with the plan.

Tokenization of real-world assets is a hot corner of crypto. BlackRock's tokenized U.S. Treasuries fund quickly grabbed $500 million of assets this year.The asset management arm of U.S.-listed cryptocurrency exchange Coinbase is creating a tokenized money-market fund, jumping into one of the hottest crypto-powered corners of finance, according to four people familiar with the plan.

Tokenization, or representing ownership of real-world assets through blockchain-based products, has become one of the big trends in crypto of late. BlackRock, the world's biggest asset manager, introduced a fund called BUIDL that holds U.S. Treasuries. That fundFor investors, tokenized funds provide numerous potential benefits, including the transparency provided by blockchain-linked assets and the possibility of greater liquidity. For issuers, there are efficiency gains.

For Coinbase Asset Management specifically, this would represent an expansion of the company's already publicly known attempt to break into the tokenization space. In December, the company received in-principle approval from an Abu Dhabi regulator toto help facilitate its tokenized fund. Apex services over $3 trillion of assets across custody, administration, depositary and managed funds.

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