Coinbase Launches Tokenized Money-Market Fund, Expanding into Asset Tokenization

According to CoinDesk, Coinbase Asset Management is set to launch a tokenized money-market fund. This move is a significant step into the burgeoning field of real-world asset (RWA) tokenization within the crypto finance sector, as confirmed by four sources close to the matter.

Tokenization, which involves creating blockchain-based representations of real-world assets, has become increasingly popular in the cryptocurrency industry. BlackRock, the world's largest asset manager, recently launched a tokenized U.S. Treasuries fund called BUIDL, which quickly accumulated $500 million in assets since its inception in March. This trend underscores the growing investor appetite for blockchain-linked financial products, which offer transparency and the potential for enhanced liquidity.

Coinbase's entry into the tokenized fund market represents an expansion of its efforts to innovate in the crypto space. The company received preliminary approval from an Abu Dhabi regulator in December to begin tokenizing traditional assets on Base, Coinbase's Ethereum scaling network. This development aligns with the company's broader strategy to explore and leverage blockchain technology for financial services.

Two insiders revealed that Coinbase Asset Management is collaborating with Apex Group, based in Bermuda, to facilitate the launch of the tokenized fund. Apex Group is known for servicing over $3 trillion in assets across various financial services, including custody, administration, depositary, and managed funds.

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