FinTech Finance News writes, "Major Banks and Firms Complete Largest Ever Tokenized MMF Sandbox." The article says, "Global Digital Finance (​GDF), the leading global digital assets members association, announced the results of a working group reporting on the legal certainty of collateral eligibility and the mobility of Tokenized Money Market Funds (​TMMF) in Luxembourg, Ireland, and the UK. Ireland and Luxembourg host more than 80% of the MMFs and cross-​border funds in Europe and English law governs the Credit Support Annex (​CSA). The report concludes: There is relative legal certainty of TMMFs located in Luxembourg in a digitally native or registered form due to the availability of statutory frameworks to govern such transactions; Longstanding historical legal interaction between Luxembourg and the UK in respect of financial and investment contractual arrangements, including CSAs, also makes this an attractive place to establish a TMMF where the tokens will be posted as collateral under a CSA governed by English law." It adds, "There is not yet express statutory or judicial authority in Ireland specifically addressing tokenized shares or TMMFs. Legal certainty in respect of ownership and treatment of tokenized shares under Irish law therefore requires an analogy to traditional shares and electronic contracts, rather than being directly established. It is reasonable to conclude that Irish courts would treat digitally native TMMF shares in a manner consistent with traditional shares. This alignment reinforces the view that TMMF shares can be accommodated within existing property law principles in Ireland, supporting their recognition and enforceability under Irish legal standards. Where an MMF is tokenized using a digitally native TMMF and is located in the UK, there is a low degree of legal uncertainty concerning the legal treatment of ownership and a similarly low level of uncertainty concerning the replication of rights for market participants between the traditional MMF and a digitally native TMMF.... Over 70 firms participated in the working group including S&​P, Federated Hermes, R3, JP Morgan, Ownera, Finastra, Lloyds Banking Group, Hogan Lovells, LSEG, Archax, Blackrock, State Street, ISDA, EY, Commerzbank, Fireblocks, Northern Trust, Apex Group, Franklin Templeton, and Goldman Sachs." Sharon Lewis, Lead Partner for Future of Finance and Co-​Chair of Digital Asset & Blockchain Practice, Hogan Lovells, comments, "There is relative legal certainty of TMMFs located in Luxembourg in a digitally native or registered form, where both Ireland and the UK have a low degree of uncertainty as the courts are likely to treat digitally native TMMF shares in a manner consistent with traditional shares. The cross discipline collaboration involved in this work has been outstanding and it is a credit to the industry participants."

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