Link of The Day
Crane 100 MF Index Up to 3.45%
Money fund yields (7-day, annualized, simple, net) were up 1 basis point to 3.45% on average during the week ended Friday, June 5 (as measured by our Crane 100 Money Fund Index), after increasing two bps the week prior. Fund yields hadn't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged six weeks ago. Yields were 3.47% on 4/30/26 and 3/31/26, 3.49% on 2/28/26, 3.50% on 1/31/26, 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 710), shows a 7-day yield of 3.35%, unchanged in the week through Friday. Prime Inst money fund yields were unchanged at 3.58% in the latest week. Government Inst MFs were unchanged at 3.44%. Treasury Inst MFs were unchanged at 3.41%. Treasury Retail MFs currently yield 3.18%, Government Retail MFs yield 3.17% and Prime Retail MFs yield 3.36%, Tax-exempt MF 7-day yields were up 18 bps to 1.73%. Money market mutual fund assets have now hit an all-time record high of $8.346 trillion on June 4, the previous record of $8.334 trillion was seen two days prior (6/2), and prior to that, $8.292 trillion on May 29, according to our Money Fund Intelligence Daily. Assets have jumped $32.1 billion in the week through Friday, and they've increased by $32.1 billion in June month-to-date (through 6/5). MMF assets increased by $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, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July and $6.7 billion last June. Weighted average maturities were at 42 days for the Crane MFA and 44 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (6/5), just 171 money funds (out of 821 total) yield under 3.0% with $191.6 billion in assets, or 2.3%, while the vast majority (650) of funds yield between 3.00% and 3.99% ($8.132 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 two weeks prior. The latest Brokerage Sweep Intelligence, with data as of June 5, 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.
Bloomberg: Money Funds Hot Strategy
Bloomberg writes, "Chilling in Money-Market Funds is the Hot Retail Strategy Now." The article, written by Alex Harris and Carter Johnson, states, "The stock market keeps setting records. Bitcoin has minted millionaires. Gold has peaked at new levels. Yet one of the most popular trades is to sit in cash or, more precisely, money-market funds. These plain‑vanilla vehicles, which invest in short‑term debt, have become the default parking spot for everyone from retail savers to corporate treasurers. The US money-market industry now holds a record $8.29 trillion -- almost twice the size of Japan's economy -- after inflows topped $1 trillion last year, according to Crane Data LLC, which tracks the industry. The strategy's popularity has been accompanied by a Wall Street catchphrase, 'T-bill and chill,' which has come to signify investors' preference for the short-term Treasuries these funds often hold." It quotes Peter Crane, president of Crane Data, "Convenience is king with cash. It's the ultimate hedge when other assets like Bitcoin and gold have done more going up and going down.'" The piece explains, "Stability in finance has been rare over the past decade as the Covid-19 pandemic, geopolitical conflicts and the rise of artificial intelligence unleashed uncertainty across global markets. The volatility has pushed safety-minded investors toward money-market funds, where the appeal is the combination of stability and returns. Yields on the 100 largest funds were near 3.5% at the end of April, according to a Crane Data index. To Amrita Bhasin, a 25-year-old tech worker in California, money-market funds feel easier to manage than, say, certificates of deposit, where cash is locked up for a specific period and subject to penalties. 'With money-market funds, I feel like I have more visibility and control over what's happening with my money,' she says. 'I want to understand where my money is, what yield I'm getting and how it's changing.'" The Bloomberg article adds, "While Wall Street forecasters have long warned that a 'wall of cash' would rush out of money-market funds and into riskier assets once the Fed started cutting interest rates, investors kept piling in last year even as the central bank lowered borrowing costs three times. Renewed market volatility in recent months, fueled in part by the Iran war and a spike in oil prices, has only reinforced the appeal of cashlike assets, with inflows continuing in 2026, according to Crane Data. 'I've been hearing the 'wall of cash' theory since money funds hit a trillion in 1997,' Crane says. 'That's the fallacy underneath the zero-sum thinking that people believe if something goes up, something else must go down.'"
MMFs Jump to New Record in June
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets rising $109.3 billion to a new record high of $7.894 trillion, after they increased $13.4 billion the previous week. MMF assets are up by $878 billion, or 12.5%, over the past 52 weeks (through 6/3/26), with Institutional MMFs up $666 billion, or 16.1% and Retail MMFs up $212 billion, or 7.3%. Year-to-date in 2026, MMF assets are up by $161 billion, or 2.1%, with Institutional MMFs up $138 billion, or 3.0% and Retail MMFs up $23 billion, or 0.8%. ICI's weekly release says, "Total money market fund assets increased by $109.25 billion to $7.89 trillion for the week ended Wednesday, June 3, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $102.96 billion and prime funds increased by $7.96 billion. Tax-exempt money market funds decreased by $1.68 billion." ICI's stats show Institutional MMFs increasing $101.2 billion and Retail MMFs increasing $8.1 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.510 trillion (82.5% of all money funds), while Total Prime MMFs were $1.238 trillion (15.7%). Tax Exempt MMFs totaled $146.2 billion (1.9%). It explains, "Assets of retail money market funds increased by $8.10 billion to $3.10 trillion. Among retail funds, government money market fund assets increased by $6.94 billion to $1.98 trillion, prime money market fund assets increased by $3.00 billion to $991.56 billion, and tax-exempt fund assets decreased by $1.85 billion to $133.07 billion." Retail assets account for 39.3% 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 $101.15 billion to $4.79 trillion. Among institutional funds, government money market fund assets increased by $96.02 billion to $4.53 trillion, prime money market fund assets increased by $4.96 billion to $245.94 billion, and tax-exempt fund assets increased by $170 million to $13.12 billion." Institutional assets accounted for 60.7% 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 $42.3 billion to $8.334 trillion month-to-date in June (as of 6/3), assets hit a record high on June 2 of $8.334 trillion. Assets increased $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 in August. They rose $63.7 billion in July and $6.7 billion last June. 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.
WSJ: Study Claims Too Much Cash
The Wall Street Journal wrote earlier this week that, "We're Keeping Too Much Cash in Our Accounts These Days." They explain, "Most Americans couldn't cover an emergency expense of $1,000 without borrowing money. That's probably less of an issue for people who read a daily markets newsletter. In fact, many savers have too much cash, which sounds like a high-class problem. Sure, life throws us curveballs -- illness, divorce, unemployment -- so a little extra cushion can come in handy. But it's surprisingly costly to overdo it. About $5.6 trillion or 10% of Americans' liquid wealth is in low-yielding bank deposits. Trillions more sit in money-market mutual funds." The piece says, "People often keep it there longer than necessary for a variety of reasons. Maybe they receive interest or dividends and let the proceeds pile up. Often they're sitting on a lump sum and don't want to commit it all at once to riskier investments like stocks or bonds because markets seem frothy or they fear yields might rise." The article speculates, "Cash earns something these days, but not much -- basically zero after taxes and inflation. Over any longer period, the opportunity cost of holding it is likely to exceed that of poor timing in the stock market." It says, "Fidelity Investments ran the numbers for what would have happened to someone who invested $5,000 in U.S. stocks annually between 1980 and 2023 at the best and the worst possible juncture each year. A portfolio with perfect timing would have grown to nearly $5.6 million in the S&P 500 while the one with perfectly awful timing would grow to $4.3 million. `Leaving that money in cash throughout that span would have turned into just $350,000. That's extreme, but many of us keep too much dry powder for future opportunities." Finally, the WSJ claims, "Money-market funds tend to see big inflows after a selloff -- usually the time that stocks are poised for some of their strongest performance. Morningstar's 'Mind the Gap' study calculated that U.S. mutual-fund investors earned a significant 1.2 percentage points less than mutual funds on average over the past decade. Cash-like investments certainly have their place in a portfolio, and not just for emergencies. Owning something safe and liquid that doesn't rise and fall with stocks or interest rates makes more and more sense as one gets closer to tapping savings because it gives us the ability to ride out bear markets. But young savers with a long time horizon, and some wealthy ones closer to retirement, are costing themselves by holding too much cash for the wrong reasons."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of May 29) includes Holdings information from 56 money funds (down 18 from a week ago), or $4.076 trillion (down from $4.687 trillion) of the $8.292 trillion in total money fund assets (or 49.2%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our May 12 News, "May MF Portfolio Holdings: Treasuries Plunge, Repo and Agencies Rise.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.886 trillion (down from $2.063 trillion a week ago), or 46.3%; Repurchase Agreements (Repo) totaling $1.437 trillion (down from $1.710 trillion a week ago), or 35.2%, and Government Agency securities totaling $432.6 billion (down from $494.0 billion a week ago), or 10.6%. Commercial Paper (CP) totaled $138.4 billion (down from $166.6 billion a week ago), or 3.4%. Certificates of Deposit (CDs) totaled $77.2 billion (down from $104.9 billion a week ago), or 1.9%. The Other category accounted for $63.6 billion or 1.6%, while VRDNs accounted for $40.8 billion or 1.0%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.886 trillion, Fixed Income Clearing Corp with $523.6B, the Federal Home Loan Bank with $276.8B, JP Morgan with $152.0B, Citi with $100.4B, Federal Farm Credit Bank with $89.8B, RBC with $88.1B, Wells Fargo with $85.2B, BNP Paribas with $76.8B and Credit Agricole with $51.5B. The Ten Largest Funds tracked in our latest Weekly include: JPMorgan 100% US Trs MM ($336.9B), JPMorgan US Govt MM ($324.8B), Fidelity Inv MM: Govt Port ($283.0B), Goldman Sachs FS Govt ($271.8B), State Street Inst US Govt ($211.1B), Morgan Stanley Inst Liq Govt ($210.3B), BlackRock Lq Treas Tr ($189.0B), BlackRock Lq FedFund ($186.9B), Fidelity Inv MM: MM Port ($163.8B) and Dreyfus Govt Cash Mgmt ($162.1B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
UBS Files for Stablecoin Reserves
A filing for the new UBS Liquid Reserves Fund explains, "The fund invests only in certain eligible reserve assets that payment stablecoin issuers are permitted to maintain under the Guiding and Establishing National Innovation for US Stablecoins Act (the 'GENIUS Act') and any regulations adopted thereunder. These eligible reserve assets include, and the fund intends to invest only in, cash, securities issued by the US Treasury with a remaining maturity of 93 days or less or issued with a maturity of 93 days or less, and overnight repurchase agreements collateralized by securities issued by the US Treasury and cash. The fund primarily intends to serve as a reserve asset for stablecoin issuers. The fund does not invest in stablecoins or stablecoin issuers. The fund has adopted a policy to invest 99.5% or more of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully (i.e., collateralized by cash and/or government securities) in order to qualify as a 'government money market fund' under federal regulations." It explains, "UBS Asset Management (Americas) LLC ('UBS AM') acts as the investment advisor. As investment advisor, UBS AM makes the fund's investment decisions. UBS AM selects money market instruments for the fund based on its assessment of relative values and changes in market and economic conditions.... Shares of the fund are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the outstanding stablecoins issued to their customers. Stablecoins generally are a type of cryptocurrency that are designed to maintain a stable value by pegging their value to another asset, such as a fiat currency like the US dollar, and stablecoin holders generally are permitted to redeem their stablecoins for a fixed amount of value. Although the fund does not invest in stablecoins or stablecoin issuers, the assets of the fund are expected to fluctuate depending on the creation (minting) of additional stablecoins or the redemption (burning) of outstanding stablecoins. Stablecoins and other digital assets that stablecoins may be used to purchase or sell may face periods of uncertainty and volatility that result in the potential for rapid or unexpected requests by one or more stablecoin issuers to redeem or purchase the fund's shares.... The minimum investment level for initial purchases generally is $1,000,000 for Institutional Shares; $50,000,000 for Preferred Shares; and $500,000,000 for Ultra Shares, as determined on a household basis." UBS also launched UBS Select 100% US Treasury - Token-Enabled share class (TOKXX) earlier this year for BNY's LiquidityDirect portal. (See the filing for TOKXX here.) Rob Sabatino, UBS AM Head of Global Liquidity Portfolio Management, comments, "Offering a GENIUS Act-compliant MMF in addition to a token-enabled MMF reflects UBS Asset Management's commitment to modernizing liquidity management. We are meeting the evolving needs of both traditional and digital-native clients by combining the stability of institutional cash strategies with the efficiency of tokenized infrastructure. This builds on our broader digital asset initiatives, including the 2024 launch of the UBS USD Money Market Investment Fund Token ('uMINT'), our tokenized money market fund in Singapore."
Bloomberg: MMF Assets Record $8.3T
Bloomberg writes that the "Dash for Cash Sends Money-Fund Assets to Record $8.3 Trillion." The article states, "Investors boosted the total amount in US money-market funds to a record $8.281 trillion as uncertainty surrounding the Federal Reserve's monetary policy path fuels demand for cash-like assets. Some $66 billion rushed into the money-market fund industry in the week ending May 28, according to the latest figures from Crane Data LLC. About $41 billion of that came on Thursday as investors adjusted their portfolios before month's end. In all, the funds have attracted about $172 billion so far this year." The piece tells us, "The recent inflows have come as traders abandoned bets that the Federal Reserve will resume cutting interest and began wagering that a hike would be needed to help quell a resurgence of inflation tied to the Iran war. Swaps markets imply a roughly 60% chance that officials increase rates by a quarter-point this year. To Deutsche Bank strategist Steven Zeng, the recalibration is fueling demand for front-end US rates, which -- along with other types of short-term securities -- make up the holdings of most money-market funds. As Fed expectations shifted from cuts to hikes, much of that repricing is captured in the bill curve, meaning more attractive yields,' he said." Bloomberg adds, "Appetite for money-market funds has been rising for years thanks to their attractive yields and ease of access for investors ranging from Wall Street professionals to corporate treasurers and everyday American savers. The funds also tend to be faster than other investment vehicles to pass along higher yields to investors. The seven-day average yield for US money funds was 3.34% as of May 28, according to Crane Data."
Archax Adds BNY Offshore MMFs
A press release titled, "Archax to Offer BNY Investments’ UCITS Money Market Funds on Digital Assets Platform," tells us, "Archax, the UK and EU regulated digital asset platform, ... announced that it is adding BNY Investments' suite of UCITS-compliant Government and Prime money market funds, and short-term bond funds to its range of tokenised real-world assets. With these blockchain-based offerings, Archax seeks to continue providing eligible investors with regulated, on-chain investment options. The tokenised funds combine BNY Investments' specialist strategies with the efficiency and accessibility of digital assets to enable faster settlement, enhanced transparency and greater investor flexibility." Graham Rodford, CEO and co-founder of Archax, comments, "We are thrilled to offer BNY Investments' UCITS Money Market funds on our digital asset platform -- which reflects our shared vision of building a resilient and transparent digital asset ecosystem." The release states, "The funds to be listed on Archax's platform include BNY Investments' UCITS suite of money market funds under the BNY Mellon Liquidity Funds plc (MLF) and Insight Liquidity Funds plc (ILF) umbrellas: ILF GBP Liquidity, ILF EUR Liquidity, ILF GBP Liquidity Plus, ILF EUR Liquidity Plus, BNY Mellon U.S. Treasury, and BNY Mellon U.S. Dollar Liquidity. The underlying strategies, covering USD, GBP, and EUR denominations and with AUM of $63bn, are sub-advised by BNY Investments, which manages $2.1 trillion in assets and has over five decades of liquidity management experience." Gerald Rehn, Head of EMEA Distribution at BNY Investments, adds, "Clients are increasingly seeking solutions that meet their liquidity needs, and offer portfolio diversification and regulatory clarity. Offering our Money Market funds with Archax is another step in our strategy to offer on-chain access to BNY's specialist investment strategies for institutional investors in the UK and Europe." Finally, the statement says, "Archax is a leading regulated digital securities exchange, broker and custodian which provides compliant and secure infrastructure supporting the issuance, trading and settlement of tokenised financial products. Archax will issue tokens representing units of the funds, initially available on Algorand, Aptos, Arbitrum, Canton, Cardano, Ethereum, Etherlink, Hedera, Solana, Stellar, XDC and XRPL."
SoFi Launches SofiUSD Stablecoin
A press release titled, "SoFiUSD Becomes the First Stablecoin Issued by a US National Bank to Launch on a Banking Platform," tells us, "SoFi Technologies, Inc. (SOFI) ... announced that SoFiUSD, a bank-issued U.S. dollar stablecoin, is available for SoFi members to buy, sell, hold, and convert directly within the SoFi app. This marks the first time that a U.S. national bank-issued stablecoin is available directly on a banking app. By expanding SoFiUSD to its nearly 15 million members, SoFi is building the bridge between traditional banking and digital assets. By integrating blockchain technology within its banking ecosystem, SoFi is helping to make digital financial tools more accessible, practical, and trustworthy." Anthony Noto, CEO of SoFi, comments, "At SoFi, we believe we can combine the speed and versatility of the blockchain with the trust of a bank to improve how money moves around the world. People no longer have to choose between blockchain technology and regulated banking products. With SoFiUSD, we're giving our members a single place to buy, hold, and pay with digital assets in the same app they already use to save, spend, borrow, and invest." The release says, "SoFiUSD is the first stablecoin issued by a U.S. national bank and offers: 1:1 Redemption: SoFiUSD is redeemable 1:1 for U.S. dollars from SoFi Bank. SoFi Bank maintains liquid assets to support all outstanding SoFiUSD. Bank-Grade Safeguards: Members benefit from the transparency of a regulated institution, including regular attestations that are performed by an independent Certified Public Accountant (CPA) licensed in the United States. Multi-Chain Flexibility: SoFiUSD is available on Ethereum and Solana -- two of the largest networks for digital asset transactions – with additional networks being added. Today's launch is the first phase of a broader roadmap to integrate stablecoin utility across the entire SoFi ecosystem." It adds, "In the coming weeks, SoFi plans to rapidly add to their product offering by: Building the ability for SoFi members to convert SoFiUSD into tokenized deposits, allowing members to earn interest and access FDIC insurance on the deposits. Separate deposit account terms will apply. Offering global mobility on the blockchain, by allowing SoFi members to move value across borders 24/7/365, with fewer delays and lower costs than typical legacy financial systems. Launching SoFiUSD on its first centralized exchange partner, Bullish, to provide seamless trading for institutional clients. This relationship further supports stable pricing and efficient execution for high-volume trades." Finally, the release states, "SoFiUSD is built to help bridge the gap between the flexibility of a stablecoin and the stability of a bank. It is supported by deep institutional liquidity and efficient execution, helping promote stable pricing and reliable high-volume trading for all members. Members can access SoFiUSD starting today, with full availability expected by early June as users update to the latest version of the SoFi app."
Crane 100 MF Index Dips to 3.42%
Money fund yields (7-day, annualized, simple, net) were down 2 basis points to 3.42% on average during the week ended Friday, May 22 (as measured by our Crane 100 Money Fund Index), after decreasing one bps the week prior. Fund yields hadn't been below 3.5% since November 2022, and they are down from a recent high of 5.20% in November 2023. They should remain flat in coming days (and weeks) since the Fed left short-term rates unchanged four weeks ago. Yields were 3.47% on 4/30/26 and 3/31/26, 3.49% on 2/28/26, 3.50% on 1/31/26, 3.58% on 12/31/25, 3.78% on 11/30, 3.90% on 10/31, 3.94% on 9/30, 4.11% on 8/31, 4.12% on 7/31, 4.13% on 6/30, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 710), shows a 7-day yield of 3.32%, down 2 bps in the week through Friday. Prime Inst money fund yields were down 1 bp at 3.55% in the latest week. Government Inst MFs were down 3 bps at 3.40%. Treasury Inst MFs were down 1 bp at 3.39%. Treasury Retail MFs currently yield 3.16%, Government Retail MFs yield 3.13% and Prime Retail MFs yield 3.33%, Tax-exempt MF 7-day yields were down 32 bps to 1.69%. Money market mutual fund assets have fallen since hitting a record high of $8.280 trillion on March 18, according to our Money Fund Intelligence Daily. Assets have fallen $8.6 billion in the week through Friday, and they've increased by $123.7 billion in May month-to-date (through 5/22). MMF assets 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, $105.2 billion in September and $132.0 billion in August. They rose by $63.7 billion in July, $6.7 billion in June and $100.9 billion last May. Weighted average maturities were at 43 days for the Crane MFA and 45 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (5/22), just 190 money funds (out of 821 total) yield under 3.0% with $245.8 billion in assets, or 3.0%, while the vast majority (631) of funds yield between 3.00% and 3.99% ($7.961 trillion, or 97.0%). No funds yield over 4.0%. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was down 1 bp at 0.29%, after remaining unchanged for twenty weeks prior. The latest Brokerage Sweep Intelligence, with data as of May 22, shows one change over the past week. RW Baird lowered rates to 0.96% for accounts of $1K to $999K, to 1.53% for accounts of $1M to $1.9M, and to 2.0% for accounts of $5M and greater. 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.
CoinDesk on JPM Stablecoin Report
CoinDesk writes that, "Stablecoins retain the edge over tokenized money market funds, JPMorgan says." Their article explains, "Tokenized money market funds still make up only around 5% of the stablecoin universe despite their ability to generate yield, Wall Street bank JPMorgan said in a Wednesday report. The bank said crypto market participants continue to favor stablecoins because they have become the ecosystem's default cash instrument for trading, collateral management, settlement, cross-border payments and liquidity management across centralized exchanges (CEX) and decentralized finance (DeFi) protocols. According to the report, money market funds face a 'structural regulatory disadvantage' because they are classified as securities, subjecting them to registration, disclosure, reporting and transfer restrictions that limit their ability to circulate freely within the crypto ecosystem." J.P. Morgan's Nikolaos Panigirtzoglou comments, "We doubt that tokenized money market funds would grow beyond 10%-15% or so of the stablecoin universe, unless there is a regulatory change that reduces the structural disadvantage arising from tokenized money market funds classified as securities." The piece explains, "As a result, the bank's analysts said demand for tokenized money market funds is largely confined to crypto-native investors seeking yield on idle cash and institutional investors looking to combine blockchain-based settlement and programmability with traditional investor protections. Advocates of tokenized money market funds say the products combine the safety and yield of traditional cash-management vehicles with the speed and flexibility of blockchain networks." CoinDesk adds, "Tokenized money market funds promise faster settlement and broader access, but they still face risks tied to liquidity, counterparty exposure, regulatory uncertainty and the underlying stability of the traditional assets backing the tokens. These tokenized funds are likely to continue growing faster than stablecoins because of their interest-bearing nature.... Regulators have offered only limited support so far. The bank pointed to a streamlined Securities and Exchange Commission (SEC) process introduced earlier this year to simplify the issuance and redemption of onchain money market funds. The report also highlighted emerging partnerships between traditional finance firms and crypto-native companies that allow institutions to use tokenized money market funds as off-exchange trading collateral while still earning yield. Still, these developments are 'marginal' and unlikely to overcome the broader regulatory disadvantages that prevent tokenized money market funds from matching the seamless utility of stablecoins across crypto markets, the report added."
MMF Assets Fly Up to $7.77 Trillion
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets rising $16.9 billion to $7.771 trillion, after they increased $1.1 billion the previous week and jumped by $127.0 billion two weeks ago. MMFs fell by a massive $175.8 billion 5 weeks ago, their largest weekly drop ever. Assets hit a record high $7.856 trillion 9 weeks ago. MMF assets are up by $803 billion, or 11.5%, over the past 52 weeks (through 5/20/26), with Institutional MMFs up $586 billion, or 14.3% and Retail MMFs up $217 billion, or 7.5%. Year-to-date in 2026, MMF assets are up by $38 billion, or 0.5%, with Institutional MMFs up $27 billion, or 0.6% and Retail MMFs up $11 billion, or 0.4%. ICI's weekly release says, "Total money market fund assets increased by $16.88 billion to $7.77 trillion for the week ended Wednesday, May 20, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $16.34 billion and prime funds increased by $946 million. Tax-exempt money market funds decreased by $409 million." ICI's stats show Institutional MMFs increasing $12.8 billion and Retail MMFs increasing $4.0 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.395 trillion (82.3% of all money funds), while Total Prime MMFs were $1.227 trillion (15.8%). Tax Exempt MMFs totaled $149.7 billion (1.9%). It explains, "Assets of retail money market funds increased by $4.04 billion to $3.09 trillion. Among retail funds, government money market fund assets increased by $2.97 billion to $1.96 trillion, prime money market fund assets increased by $1.35 billion to $988.31 billion, and tax-exempt fund assets decreased by $274 million to $136.40 billion." Retail assets account for 39.7% of the total, and Government Retail assets make up 63.6% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $12.84 billion to $4.68 trillion. Among institutional funds, government money market fund assets increased by $13.38 billion to $4.43 trillion, prime money market fund assets decreased by $404 million to $238.40 billion, and tax-exempt fund assets decreased by $135 million to $13.29 billion." Institutional assets accounted for 60.3% 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 $121.4 billion to $8.204 trillion month-to-date in May (as of 5/20), assets hit a record high on March 18 of $8.280 trillion. Assets 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 in August. They rose $63.7 billion in July, $6.7 billion in June and $100.9 billion last May. 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.
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