Tokenised MMF market ‘small’ but could create contagion – BdF
French central bank calls for international co-operation to regulate new assets
Tokenised money market funds (MMFs) are a small but potentially lethal pocket of the financial markets, claim economists from France’s central bank.
In a paper released on July 1, Nicolas Barbaroux, Claire Brousse and Déborah Zribi argue that these assets – which function in a similar manner to stablecoins but usually offer net yields at the same rate as US Treasuries – pose threats to financial stability.
Tokenised MMFs invest in highly liquid assets, such as short-term US Treasuries. The
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