CoinDesk writes, "Tokenization Is '​Mutual Fund 3.​0,' Bank of America Says." The article tells us, "Bank of America (​BAC) sees tokenization, the creation of a virtual investment vehicle on the blockchain linked to a tangible asset, as the next phase in the evolution of investment products, describing it as '​mutual fund 3.​0,' the Wall Street bank said in a Friday report. Just as mutual funds first emerged in 1924 and exchange-​traded funds (​ETFs) reshaped investing in the 2000s, blockchain technology could underpin a new generation of financial vehicles, analysts led by Craig Siegenthaler wrote." The piece continues, "Still, regulation remains a headwind. The GENIUS and Clarity Acts address stablecoins, but leave many questions about tokenized funds unresolved. Still, the bank argues, the advantages of tokenization will drive adoption over time despite limited access for U.​S. investors today.... That shift pushed firms toward monetizing client cash and order flow, making tokenized versions of these assets less compelling, the bank'​s analysts said. But tokenized money market funds, powered by smart contracts, could upend those cash sweep economics and open new revenue models." CoinDesk adds, "Bank of America expects tokenized money market funds to lead adoption thanks to their attractive yields relative to stablecoins, which cannot pay interest under the Genius Act, with private credit and high yield likely to follow."

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