Link of The Day
BlackRock Tokenised Hong Kong MMF
A publication named Fund Selector Asia published a brief titled, "BlackRock authorised for its first tokenised money market fund in Hong Kong." It explains, "BlackRock ... announced that it has received regulatory authorisation for the BlackRock HKD Digital Liquidity fund, a Hong Kong-domiciled Hong Kong dollar money market fund designed to operate across traditional and digital financial channels. The fund will combine blockchain technology with the established characteristics of a professionally managed money market fund, enabling eligible investors of all types to transact through traditional and on-chain channels, with the aim of enhancing efficiency, transparency and access, according to a statement by the asset manager." The piece says, "[T]he fund will be BlackRock's first tokenised offering in Hong Kong and Asia Pacific, and the first Hong Kong domiciled money market fund to offer a constant net asset value (CNAV) to both institutional and retail investors in the local market.... Backed by BlackRock's institutional-grade cash management, the fund seeks to provide liquidity, stability and income by investing in high-quality, short-term Hong Kong dollar money market instruments, such as government bills and deposits. The fund will add to BlackRock's global suite of tokenised money market funds, spanning the US, Europe and Asia Pacific." The release adds, "Investors will be able to use HKDAP – one of the first regulated on-chain Hong Kong dollar-backed stablecoins, issued by Standard Chartered-led Anchorpoint Financial Limited – to subscribe and redeem from the fund. This serves as the first commercial application for Standard Chartered as the bank distributor of HKDAP. Standard Chartered will also act as custodian, fund administrator and trustee of the Fund, alongside innovative digital responsibilities including tokenization."
ICI: MMF Assets Dip to $7.97 Trillion
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets decreasing $6.1 billion to $7.973 trillion. Assets rose $44.8 billion to a record high $7.979 trillion the previous week and increased $6.1 billion the week before this. MMF assets are up by $670 billion, or 9.2%, over the past 52 weeks (through 9/9/26), with Institutional MMFs up $521 billion, or 12.0% and Retail MMFs up $149 billion, or 5.0%. Year-to-date in 2026, MMF assets are up by $240 billion, or 3.1%, with Institutional MMFs up $203 billion, or 4.4% and Retail MMFs up $37 billion, or 1.2%. ICI's weekly release says, "Total money market fund assets decreased by $6.10 billion to $7.97 trillion for the week ended Wednesday, September 9, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $7.99 billion and prime funds increased by $3.47 billion. Tax-exempt money market funds decreased by $1.57 billion. ICI's stats show Institutional MMFs decreasing $7.0 billion and Retail MMFs increasing $0.9 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.578 trillion (82.5% of all money funds), while Total Prime MMFs were $1.246 trillion (15.6%). Tax Exempt MMFs totaled $149.4 billion (1.9%). It explains, "Assets of retail money market funds increased by $891 million to $3.11 trillion. Among retail funds, government money market fund assets increased by $490 million to $1.98 trillion, prime money market fund assets increased by $1.38 billion to $994.54 billion, and tax-exempt fund assets decreased by $979 million to $136.94 billion." Retail assets account for 39.1% of the total, and Government Retail assets make up 63.7% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $6.99 billion to $4.86 trillion. Among institutional funds, government money market fund assets decreased by $8.48 billion to $4.59 trillion, prime money market fund assets increased by $2.09 billion to $251.10 billion, and tax-exempt fund assets decreased by $592 million to $12.41 billion." Institutional assets accounted for 60.9% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $37.5 billion to $8.379 trillion month-to-date in September (as of 9/9), assets reached an all-time high of $8.404 trillion on July 6. Assets increased $52.8 billion in August, decreased $61.4 billion in July, increased $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October and $105.2 billion last September. Note that `ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
Northern Stablecoin Cash Reserves
A press release titled, "Northern Trust Asset Management Launches Stablecoin Cash Reserves Portfolio," tells us, "Northern Trust Asset Management ... announced the launch of the Northern Institutional Funds Stablecoin Cash Reserves Portfolio (NSCXX). The Stablecoin Cash Reserves Portfolio is a U.S. government money market fund designed to support stablecoin issuers' cash reserve needs. The fund is structured to hold the reserves for stablecoins, as permitted under the recent Guiding and Establishing National Innovation for U.S. Stablecoins ('GENIUS') Act. The fund is a 2a-7 Treasury and Treasury repurchase agreement money market fund, with remaining maturities of 93 days or less. The fund invests in U.S. Treasury securities and Treasury repurchase agreements and does not invest in, or own, stablecoins within the portfolio." Paula Kar, Chief Product Officer of Northern Trust Asset Management, comments, "The stablecoin market is rapidly evolving as issuers look for reserve solutions that seek to meet their capital preservation and liquidity needs, while aligning with new regulatory requirements. This portfolio applies our institutional cash management experience to that challenge, giving issuers access to a dedicated reserve solution built around high-quality, short-term U.S. government assets. Together with our tokenized fund capabilities, this launch reinforces our focus on connecting trusted investment structures with the evolving digital financial ecosystem." The release explains, "This Stablecoin Cash Reserves Portfolio launch follows Northern Trust Asset Management's entry into the digital assets market earlier this year, after the launch of a tokenized share class of the NIF Treasury Instruments Portfolio. These developments represent Northern Trust Asset Management's commitment to providing clients with digitally-powered solutions in a transforming marketplace. Northern Trust Asset Management has US$395 billion in assets under management in liquidity strategies as of June 30, 2026." For more, see these Crane Data News stories: "Money Funds Low Profile on Q2 Earnings Call Radar; Schwab, Northern" (7/23/26), "Northern Trust A.M. Launches Tokenized Treasury Digital Enabled Shares" (3/3/26), and "Northern Earnings Discuss Deposits, Tokenized Money Funds, Offshore" (10/24/25).
Crane 100 Money Fund Index at 3.51%
Money fund yields (7-day, annualized, simple, net) were up 1 basis point to 3.51% on average during the week ended Friday, September 4 (as measured by our Crane 100 Money Fund Index), after increasing 1 bp the week prior. Fund yields should remain flat in coming days (and weeks) unless and until the Fed moves rates higher. Yields were 3.49% on 7/31/26, 3.47% on 6/30 and on 3/31, 3.58% on 12/31/25, 4.13% on 6/30/25 and 4.28% on average on 12/31/24. MMFs averaged 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 724), shows a 7-day yield of 3.41%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 3.61% in the latest week. Government Inst MFs were unchanged at 3.50%. Treasury Inst MFs were up 1 bp at 3.49%. Treasury Retail MFs currently yield 3.26%, Government Retail MFs yield 3.23% and Prime Retail MFs yield 3.39%, Tax-exempt MF 7-day yields were down 22 bps to 1.87%. Assets increased $11.7 billion in the week through Friday, and they've increased by $11.7 billion in September month-to-date (through 9/4). But assets remain below their all-time record high of $8.404 trillion hit on July 6, according to our Money Fund Intelligence Daily. MMF assets increased $52.8 billion in August, decreased by $61.4 billion in July, increased by $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased by $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October and $105.2 billion last September. Weighted average maturities were at 39 days for the Crane MFA and 39 days the Crane 100 Money Fund Index. According to Tuesday's Money Fund Intelligence Daily, with data as of Friday (9/4), just 157 money funds (out of 835 total) yield under 3.0% with $191.4 billion in assets, or 2.3%, while the vast majority (678) of funds yield between 3.00% and 3.99% ($8.162 trillion, or 97.7%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.29%, after falling 1 bp fifteen weeks prior. The latest Brokerage Sweep Intelligence, with data as of September 4, shows no changes over the past week. Four of the 10 major brokerages tracked by our BSI offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch, Morgan Stanley and Schwab.
New Aegis Trust Tokenized Aid MMF
A press release, "Aegis Trust Builds a Tokenization Ecosystem with Impact," tells us, "Aegis Trust, a SEC qualified custodian for digital assets, ... announced the development of the world's first tokenized money market fund that focuses on social impact. Leveraging the blockchain eliminates delays, reduces inefficiencies, and restores trust in global aid systems. Aegis Trust is working with global investors and partners to demonstrate how investment returns and tokenized capital can help fund disaster response and humanitarian relief." It states, "Through a partnership with regulated asset manager, the Tokenization Foundation Money Market Fund is designed to optimize cash management while generating measurable global impact through tokenized aid. Aegis Trust pledges to donate 10% of gross revenue received from this Money Market Fund to humanitarian aid and disaster relief, and benefits investors, aid workers and council members with TF Tokenized Coins. Investors are also allocated 10% TF Coins up to the first US$10B AUM. Nonprofit organization including aid workers can receive 10% TF Coins from AI-enabled activations and as they accrue TF Coins. As Super Validators, with governing rights to the infrastructure and information rights of the rail including reporting, monitoring, 10% TF Coin are allocated to 10 Council Members." Serra Wei, Cofounder of Aegis Trust and the Tokenization Foundation, comments, "The future of financial services is going digital and as the need for blockchain and digital asset financial solutions grows, Aegis Trust is working with global council members to build Tokenization Foundation on crisis capital infrastructure where the blockchain enables instant, traceable, and secure transfers for humanitarian aid. The Tokenization Foundation looks to relieve aid trapped in slow grant cycles, burdened by administrative overhead, and limited by opaque reporting systems to deliver funding instantly, transparently, and at scale." The release adds, "Aegis Trust is adding banking expert Steve Andrews as a member of the Board of Director at Aegis Trust to support governance and risk management with current board members Lynne Marlor, Dave Timpe and Todd Bernard. Steve's long career involved the operational aspects of running five banks as the President and CEO."
T. Rowe on Stable Value vs. MMFs
T. Rowe Price published an article called, "Resetting expectations: Why stable value makes sense in today's dynamic markets," which tells us, "The debate between stable value portfolios and money market funds has reignited, as defined contribution (DC) consultants expect increased plan sponsor interest in reviewing/revisiting their plans' capital preservation investment options. This is largely driven by today's interest rate environment, in which money market fund yields have outpaced stable value crediting rates over the past three years -- a dynamic rarely seen over the past three decades. As the interest rate cycle enters a more uncertain phase, we believe now is the time for plan sponsors to consider stable value and its place as a long term capital preservation strategy in a plan lineup." The brief continues, "With increased uncertainty over the path of interest rates going forward, plan sponsors should reexamine the trade‑offs between capital preservation options. Money market funds and stable value strategies both play important roles in DC plan lineups, and many plans offer both options to participants. However, the two have historically behaved differently throughout changes in the interest rate cycle." It adds, "The key difference is how fast yields respond to changes in interest rates. Historically, when rates rose, money market funds benefited because their yields can increase in a short period of time. They tend to respond almost immediately to changes in the federal funds rate because they must invest in very short‑term securities that mature and reset frequently. That same dynamic can be a detriment for money markets in a falling rate or low rate environment as money market yields reprice lower. Stable value typically reacts more slowly because portfolios are longer duration, and wrap contracts are intended to help reduce day‑to‑day volatility and smooth changes in the interest rate investors earn. Crediting‑rate resets are heavily influenced by portfolio yields, market‑to‑book relationships, and participant cash flows."
JPM Update on July Portfolio Holdings
Last week, J.P. Morgan wrote in its "JPM Mid-Week US Short Duration Update," that, "July was a muted month for MMFs, with inflows totaling just $15bn, the weakest July inflows since 2021.... However, beneath the surface, `MMFs absorbed a large share of the nearly $300bn increase in net T-bill supply to private investors in July. Indeed, MMFs increased their T-bill allocations by $264bn last month, absorbing nearly 88% of the issuance. Against this backdrop of muted inflows but heavy T-bill absorption, MMFs rotated out of repo, with total repo allocations declining by $124bn, bringing their allocation as a share of portfolio holdings down to 35%, the lowest since October of last year." They tell us, "Unsurprisingly, most of the decline in repo exposure came from the FICC-cleared repo, likely reflecting a reversal of June quarter-end balance sheet effects. At the same time, MMFs' dealer repo exposure surged, rising $101bn and bringing total dealer repo exposure to nearly $2.1tn.... Within dealer repo, exposure to U.S. banks increased by $75bn to $979bn, taking the year-to-date repo increase to $187bn. In contrast, exposure to Canadian dealers declined by $100bn in July, likely reflecting balance sheet adjustments around Canadian bank quarter-end. Outside of repo, government MMFs have also trimmed other exposures; allocations to Treasury coupons and FRNs declined by $89bn, consistent with a rotation into T-bills this month. Government MMFs' allocations to agencies rose, modestly, to $1.18tn, driven by FRNs.... Looking ahead, as we enter a period of negative T-bill supply in September, we expect funding markets to remain contained outside of modest pressures on the corporate tax date and quarter-end." The brief adds, "Meanwhile, MMFs appear to have maintained a defensive tone, with MMF WAMs continuing to shorten. Prime WAMs fell 1.7 days in July after declining 1.4 days in June.... This preference for liquidity is also evident in the holdings: prime funds increased repo exposure by $32bn. This defensive tone is prominent amid a time of elevated policy uncertainty as 1y1y OIS has moved in a wide 28bp range during July alone. At the same time, prime funds continued to add credit exposure by $16bn in July, taking total credit exposure up $72bn year to date.... Nearly half of this growth has been driven by both ABCP and non-financials, which is consistent with the surge in supply this year (ABCP outstandings $100bn YTD; non-financial outstandings $125bn YTD).... Looking ahead, we continue to believe that if the growth in ABCP supply continues, prime MMFs should be able to absorb the issuance on the margin, especially given the typical seasonal trend higher in MMF balances over the next four months. That said, issuer concentration remains a key risk and continues to be a potential constraint."
Bloomberg on Guggenheim CP Unit
Bloomberg writes "Guggenheim Seeks to Reassure Clients of Commercial-Paper Unit." They state, "A Guggenheim subsidiary sought to reassure investors that it remains a viable issuer of short-term financing known as commercial paper as regulators and federal prosecutors continue to probe the company's founder Mark Walter. Guggenheim Treasury Services 'is not a target of the investigations and continues to operate business as usual,' the company said in a message to investors seen by Bloomberg. 'GTS has a 30-year operating history, having issued and repaid over $12 trillion of commercial paper.'" The piece explains, "Guggenheim's commercial paper issuers operate 'as bankruptcy-remote entities, which are not owned by any of the targeted entities under investigation,' according to the Aug. 20 message. 'In the unlikely event that GTS does not perform its managerial duties,' the company said, it would appoint an independent agent to repay its obligations." Discussing commercial paper, Bloomberg adds, "Money‑market funds were once the dominant buyers, but today account for only about 20% of the market, with the rest held by banks, corporates and other cash investors. Within that market, Guggenheim Treasury Services operates asset‑backed commercial paper conduits -- structures that issue short‑term notes backed by secured loans. Unlike during the financial crisis, a majority of such paper is now usually backed by repurchase agreements rather than pools of receivables. Such entities have long been used by major banks and finance companies to raise short‑term funding."
CAG on Tier 2 Commercial Paper
A blog posted on "Linked In" by Capital Advisors Group titled, "Getting Under the Hood," tells us, "Tier-2 commercial paper may offer a potential for additional yield. But realizing that opportunity requires looking beyond the rating to understand the underlying credit quality and assessing whether the incremental yield is appropriate given the additional risk. As money market reforms continue to influence cash investment strategies and drive more money toward Government and Treasury money market funds, A2/P2 -- or Tier-2 -- commercial paper may offer institutional investors an alternative investment option and potential for additional yield." They write, "At first glance, the opportunity may seem straightforward: take on somewhat more credit risk in exchange for additional yield. But the rating is only the starting point. Tier-2 commercial paper continues to be a viable investment for cash portfolios and a possible alternative to MMF investments. However, the underlying business dynamics of issuers can vary considerably. Our focus is on corporate issuers rather than financial issuers within the A2/P2 universe. We then evaluate these corporate issuers to identify those that we believe exhibit characteristics consistent with what we call 'Tier-2 by rating, Tier-1 by quality.'" The post adds, "The additional yield only tells part of the story. The more important question is what's driving it -- and whether the underlying credit fundamentals and business dynamics support the pickup in yield."
BNY MMF Changes NAV Calc Times
A Prospectus Supplement filing for BNY Dreyfus Treasury and Agency Liquidity Money Market Fund tells us, "Effective September 1, 2026, the fund's net asset value (NAV) will be generally calculated every hour on the hour from 8:00 a.m. to 5:00 p.m., Eastern time, each day the fund accepts purchase orders and redemption requests (each such time, the trading deadline for orders "in proper form"). An order in proper form received and accepted after 5:00 p.m. will be priced at the NAV first determined on the following business day and will begin to accrue dividends on such business day." See too the press release, "First Fully Onchain Repo Transaction Completed Using a Sovereign Digital Bond," which says, "Virtu Financial, M1X Global and Tradeweb today announced the completion of the first fully onchain repo transaction in which the securities leg was a sovereign digital bond. Executed on the Canton network, every element of the transaction -- securities delivery, cash leg and return -- settled atomically onchain. The transaction is the first known instance of a natively issued sovereign digital security functioning as collateral in a repo executed through a major institutional electronic trading venue without prime broker intermediation.... USDM1, the securities leg of the transaction, is a sovereign bond issued natively onchain by the Republic of the Marshall Islands, structured under New York law in the style of a fully collateralized Brady bond.... Unlike digital cash instruments, USDM1 pays a coupon when used as margin or collateral. The instrument is available through Tradeweb with institutional custody through Anchorage, BitGo and tZERO. It is also supported by FDIC-insured Bank of Guam."
MMF Assets Inch Higher for 3rd Week
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets rising $6.1 billion to $7.935 trillion. Assets rose $900 million the previous week and increased $18.3 billion the week before this. MMF assets are up by $728 billion, or 10.1%, over the past 52 weeks (through 8/26/26), with Institutional MMFs up $571 billion, or 13.4% and Retail MMFs up $157 billion, or 5.3%. Year-to-date in 2026, MMF assets are up by $201 billion, or 2.6%, with Institutional MMFs up $176 billion, or 3.8% and Retail MMFs up $25 billion, or 0.8%. ICI's weekly release says, "Total money market fund assets increased by $6.11 billion to $7.93 trillion for the week ended Wednesday, August 26, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $6.31 billion and prime funds decreased by $834 million. Tax-exempt money market funds increased by $633 million. "ICI's stats show Institutional MMFs increasing $9.5 billion and Retail MMFs decreasing $3.4 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.547 trillion (82.5% of all money funds), while Total Prime MMFs were $1.237 trillion (15.6%). Tax Exempt MMFs totaled $149.9 billion (1.9%). It explains, "Assets of retail money market funds decreased by $3.39 billion to $3.10 trillion. Among retail funds, government money market fund assets decreased by $2.17 billion to $1.98 trillion, prime money market fund assets decreased by $1.59 billion to $990.39 billion, and tax-exempt fund assets increased by $371 million to $137.35 billion." Retail assets account for 39.1% of the total, and Government Retail assets make up 63.7% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $9.50 billion to $4.83 trillion. Among institutional funds, government money market fund assets increased by $8.49 billion to $4.57 trillion, prime money market fund assets increased by $754 million to $246.86 billion,and tax-exempt fund assets increased by $263 million to $12.53 billion." Institutional assets accounted for 60.9% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $69.3 billion to $8.358 trillion month-to-date in August (as of 8/26), assets reached an all-time high of $8.404 trillion on July 6. Assets decreased $61.4 billion in July, increased $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion last August. Note that `ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're almost $400 billion lower than Crane's asset series.
FDIC: Deposits Inch Higher in Q2
A press release, entitled, "FDIC-Insured Institutions Reported Return on Assets of 1.37 Percent and Net Income of $90.1 Billion in Second Quarter 2026," comments, "The Federal Deposit Insurance Corporation (FDIC) ... released the results of its latest `Quarterly Banking Profile, a comprehensive summary of financial results based on reports from 4,238 insured commercial banks and savings institutions <b:>`_. In second quarter 2026, FDIC-insured institutions reported a return on assets (ROA) ratio of 1.37 percent and aggregate net income of $90.1 billion, an increase of $9.7 billion (12.0 percent) from the prior quarter. The banking industry continued to maintain strong capital and liquidity levels, which support lending and protect against potential losses." The FDIC Quarterly Banking Profile Second Quarter 2026 statement says, "The primary drivers of the industry's $9.7 billion increase in net income were higher noninterest income (up $5.5 billion, or 6.1 percent), mostly due to trading revenues given continued market volatility and higher fee income, and securities gains, primarily from one-time gains on equity security transactions (up $5.5 billion). Net interest income (up $5.3 billion, or 2.8 percent) also contributed to the increase in net income. Industry gains were partially offset by higher noninterest expense, which increased $4.4 billion, or 2.8 percent.... The industry's NIM increased to 3.32 percent, up 1 basis point from the prior quarter and up 6 basis points from the year-ago quarter…. During the quarter, the yield on earning assets increased slightly more than the cost of funds, resulting in a 1 basis point increase in the industry’s NIM." The release continues, "Domestic deposits increased for the eighth consecutive quarter, rising 0.8 percent during the second quarter. Estimated uninsured domestic deposits accounted for all of the increase in domestic deposits from the prior quarter, as insured deposits decreased slightly." It adds, "The Deposit Insurance Fund (DIF) was $161.1 billion on June 30, 2026, up $3.7 billion from the first quarter..... The reserve ratio, which is calculated as the ratio of the DIF to estimated insured deposits, increased 5 basis points in the second quarter to 1.48 percent and was 12 basis points higher than the year-ago quarter. In conclusion, the banking industry continued to show resilience in second quarter 2026. The industry saw robust loan and deposit growth during the quarter. Strong capital and liquidity levels continued to support lending and protect against potential losses. However, the industry still faces weakness in certain loan portfolios and elevated unrealized losses. These issues will remain matters of ongoing supervisory attention by the FDIC."
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