Schroders has received regulatory approval from the Central Bank of Ireland to launch a US dollar money market fund with a tokenised share class.
The asset manager said the launch of SOAR (Schroders Onchain Active Returns) is in response to growing client demand for digital asset solutions and enhanced operational efficiency.
Head of US Fixed Income Neil Sutherland will oversee the Ireland domiciled fund with the support of a range of credit specialists.
J.P.Morgan’s blockchain business unit Kinexys will allow clients to use smart contracts – programs deployed on a blockchain that execute automatically when set conditions are met – to make secure and transparent transactions, such as redemptions and transfers.
Meagen Burnett, chief financial officer at Schroders, said: “For more than two centuries we have navigated social, economic and technological change to deliver excellent long-term investment outcomes for our clients.
“By combining money market investments with the benefits of distributed ledger technology, we are offering investors a new level of access, efficiency and security. This milestone is a testament to our commitment to developing world-class solutions that meet the evolving needs of investors in the digital age, and is a pivotal step forward for Schroders, as we move towards our vision of delivering a composable finance ecosystem for our clients.”
Kara Kennedy, global head of market development, Kinexys by J.P. Morgan, added: “Tokenised financial infrastructure is no longer theoretical; it’s restructuring liquidity, settlement and digital asset workflows at increasing speed.
“As demand for tokenised assets grows, tokenised money market funds can help meet investor needs while introducing new features enabled by blockchain technology. We remain committed to helping the industry at large evolve solutions that lower barriers to entry and add value through new on-chain functionality.”
