Generali Investments has launched a tokenised unit class of its Luxembourg-domiciled Money Market Fund, run by Generali Asset Management.
The tokenisation facilitates the digital representation of a fund unit on a distributed ledger, while smart contracts and distributed ledger technology (DLT) infrastructure can automate how those units are issued, transferred and administered.
Generali Investments said DLT is expected to enable significant benefits for investors, including near-instant settlement and faster access to redemption proceeds compared with traditional settlement cycles. Other benefits include a simpler experience across subscription, redemption and reporting processes; greater flexibility through extended dealing windows; and improved liquidity through secondary-market trading.
Woody Bradford, CEO and general manager at Generali Investments, said:"As the adoption of tokenization accelerates across financial markets, asset managers must move quickly to capture its potential.
“Building on the progress already made in AI and automation, this launch further advances our technology agenda. It combines our established investment expertise with a more efficient and digitally enabled way of serving clients, helping us meet their evolving expectations and remain at the forefront of innovation in our industry.”
Emiliano Di Giammatteo, chief operating officer at Generali Investments, added: “Tokenization and digital assets can play an important role in modernising our investment fund infrastructure.
“Money market funds are a compelling starting point because of their potential to broaden distribution while enabling more efficient liquidity and collateral management, both across traditional capital markets and for stablecoin issuers. They could also become an important building block in a more connected and programmable financial ecosystem.”
