Tokenization: The New “Mutual Fund 3.0” You Didn’t Know You Needed

tokenized money market funds, driven by the sorcery of smart contracts, might just flip those tired old cash-sweep economics on their head and offer new revenue streams. Ah, the sweet smell of disruption.

But let’s not get ahead of ourselves. Distribution is still a bottleneck. Tokenized funds are still as rare as unicorns, and platforms that offer them are few and far between. But online brokers like Robinhood, Public, and eToro (ETOR), with their crypto-fueled dreams and millennial clientele, are ready to take the plunge. Coinbase (COIN), with its broadening horizons, might also throw its hat into the ring, though they’re still figuring out what exactly “finance” means outside of crypto.

In conclusion, Bank of America predicts that tokenized money market funds will be the first to dominate, offering yields that make stablecoins look like the boring cousins at the family reunion. After that? Private credit and high yield will likely follow, like a merry band of followers who know a good thing when they see it.