The world of blockchain and digital assets is rapidly evolving, and one of the most transformative trends gaining momentum in 2025 is the tokenization of real-world assets (RWA). At the forefront of this movement, Coinbase Asset Management is developing a tokenized money market fund, according to four sources familiar with the matter. This strategic move positions Coinbase as a key player in bridging traditional finance with decentralized infrastructure—following in the footsteps of industry giants like BlackRock.
Tokenization—the process of representing ownership of physical or financial assets on a blockchain—is unlocking new levels of liquidity, transparency, and accessibility in finance. By converting traditionally illiquid assets into digital tokens, institutions can enable fractional ownership, faster settlement, and 24/7 trading across global markets.
👉 Discover how tokenized funds are reshaping global finance
The Rise of Real-World Asset Tokenization
Real-world asset tokenization has transitioned from concept to reality over the past 18 months. Institutional adoption has accelerated, driven by growing demand for yield-bearing digital products that are both secure and compliant.
One of the most notable success stories in this space is BlackRock’s BUIDL fund, launched in March 2025. This tokenized U.S. Treasury fund quickly amassed $500 million in assets under management, demonstrating strong market appetite for regulated, blockchain-based financial instruments. BUIDL operates on a private blockchain and offers investors exposure to short-term government debt with daily liquidity—a compelling alternative to traditional money market funds.
The success of BUIDL has sparked a wave of innovation across Wall Street and Silicon Valley. Firms are now racing to develop similar products that bring bonds, equities, real estate, and cash equivalents on-chain. In this competitive landscape, Coinbase Asset Management is emerging as a critical infrastructure provider and product innovator.
Coinbase’s Strategic Push Into On-Chain Funds
While Coinbase is best known as a cryptocurrency exchange, its asset management arm has been quietly building institutional-grade financial products tailored for the digital asset ecosystem. The upcoming tokenized money market fund represents a natural extension of this strategy.
Although specific details such as yield structure, underlying assets, and launch timeline remain undisclosed, sources indicate that the fund will likely invest in high-grade short-term securities—similar to conventional money market vehicles—while leveraging blockchain technology for issuance, custody, and transferability.
This approach offers several advantages:
- Near-instant settlement: Transactions settle in minutes instead of days.
- Programmable compliance: Smart contracts can automate regulatory checks and investor eligibility.
- Global access: Accredited investors worldwide can participate without relying on legacy banking rails.
- Transparency: On-chain tracking allows for real-time auditing and enhanced trust.
By launching a tokenized fund, Coinbase isn’t just creating a new investment vehicle—it’s helping to build the foundation of what many call “programmable finance,” where financial instruments are not only digitized but also composable, interoperable, and automated.
👉 See how next-gen financial platforms are transforming investing
Why Now? Market Conditions Fueling Adoption
Several macroeconomic and technological factors have converged to make 2025 the breakout year for tokenized assets:
- Demand for yield: With inflation pressures and fluctuating interest rates, investors are seeking stable, short-duration instruments. Tokenized money market funds offer attractive risk-adjusted returns.
- Institutional readiness: Banks, hedge funds, and pension managers are increasingly comfortable allocating capital to blockchain-based products, especially when backed by trusted names like Coinbase.
- Regulatory clarity: The U.S. Securities and Exchange Commission (SEC) and other global regulators have begun outlining frameworks for digital securities, reducing legal uncertainty.
- Improved infrastructure: Blockchain scalability, security, and interoperability have improved significantly, enabling enterprise-level deployment.
These conditions have created fertile ground for innovation—and Coinbase is well-positioned to capitalize.
Competitive Landscape: Who Else Is in the Game?
While BlackRock was an early mover with BUIDL, it’s far from alone. Fidelity, Franklin Templeton, and JPMorgan are all piloting or launching their own tokenized asset initiatives. However, what sets Coinbase apart is its deep integration within the crypto ecosystem.
Unlike traditional asset managers building isolated blockchain solutions, Coinbase brings together:
- A regulated exchange platform
- Custody services via Coinbase Cust
- Clearing and settlement infrastructure
- A growing suite of on-chain financial tools
This vertically integrated model allows Coinbase to offer end-to-end solutions for issuing and managing tokenized funds—making it a preferred partner for both developers and institutional clients.
Core Keywords Driving Visibility
To ensure alignment with search intent and maximize SEO performance, the following core keywords have been naturally integrated throughout this article:
- Tokenized money market fund
- Real-world asset (RWA) tokenization
- Coinbase Asset Management
- Blockchain-based finance
- On-chain funds
- Digital asset innovation
- Institutional crypto adoption
- Programmable finance
These terms reflect high-volume queries from investors, developers, and financial professionals researching the convergence of traditional finance and blockchain technology.
👉 Explore platforms powering the future of tokenized investments
Frequently Asked Questions (FAQ)
Q: What is a tokenized money market fund?
A: It’s a digital version of a traditional money market fund where shares are issued as blockchain tokens. Investors gain exposure to low-risk, short-term securities with added benefits like faster settlement and 24/7 availability.
Q: How does RWA tokenization work?
A: Real-world assets like bonds or real estate are represented as digital tokens on a blockchain. Each token corresponds to a fraction of ownership and can be traded, transferred, or used in decentralized applications.
Q: Is Coinbase’s fund available to retail investors?
A: While details are still emerging, initial offerings are expected to target accredited and institutional investors due to regulatory requirements. Broader retail access may follow in later phases.
Q: How does this differ from stablecoins?
A: Stablecoins are typically backed by cash or cash equivalents but function as payment tokens. Tokenized funds represent investment products with underlying portfolios and potential yields—offering more complexity and regulatory oversight.
Q: What blockchain will Coinbase use for its fund?
A: The specific chain hasn’t been confirmed yet. However, given Coinbase’s involvement with Ethereum and its Layer-2 network Base, either could serve as a likely candidate.
Q: Are tokenized funds safe?
A: Safety depends on custody solutions, regulatory compliance, and transparency. Reputable issuers like Coinbase employ audited smart contracts, third-party custodians, and regular reporting to protect investor interests.
With its planned entry into the tokenized money market fund space, Coinbase Asset Management is not just following a trend—it’s helping define the future of finance. As real-world assets continue to migrate on-chain, platforms that combine regulatory rigor with technological innovation will lead the next wave of financial transformation.