Coinbase Asset Management is venturing into the world of tokenized money-market funds, as reported by four sources familiar with the initiative. This move comes amidst a growing trend in the crypto space towards tokenization of real-world assets, with BlackRock’s tokenized U.S. Treasuries fund attracting $500 million in assets since its launch earlier this year.
The concept of tokenization involves representing ownership of real-world assets through blockchain technology, providing benefits such as increased transparency and liquidity for investors. For Coinbase Asset Management, this expansion into tokenized funds builds upon their existing efforts to explore tokenization. In December, the company received approval to tokenize traditional assets on Base, their Ethereum scaling network.
To facilitate their tokenized fund, Coinbase Asset Management is reportedly collaborating with Apex Group, a Bermuda-based company that oversees over $3 trillion in assets. This partnership aims to leverage Apex’s expertise in custody, administration, and managed funds to support Coinbase’s foray into the tokenization space.
In 2023, Coinbase acquired One River Digital Asset Management, leading to the establishment of Coinbase Asset Management. Despite these developments, Coinbase has chosen not to comment on their latest venture into tokenized money-market funds, while Apex Group has remained silent on the matter as well.
It is worth noting that CoinDesk, the source of this news, maintains strict editorial policies to ensure journalistic integrity. In November 2023, CoinDesk was acquired by the Bullish group, which owns a regulated digital assets exchange. Both companies have interests in various blockchain and digital asset businesses, with significant holdings in bitcoin. CoinDesk continues to operate independently, with an editorial committee safeguarding its journalistic independence.
Overall, Coinbase’s entry into tokenized money-market funds reflects the growing interest in blockchain-based financial products and the potential benefits they offer to investors and issuers alike. As the crypto industry continues to evolve, the adoption of tokenization could revolutionize traditional finance by enhancing accessibility, transparency, and efficiency in asset management.