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The Federal Reserve Bank of Cleveland hosted its "2025 Financial Stability Conference" Thursday and Friday, which featured one presentation titled, "Stablecoins and Safe Asset Prices." The Abstract for this segment states, "This paper examines the impact of dollar-​backed stablecoin flows on short term US Treasury yields using daily data from 2021 to 2025. Estimates from instrumented local projection regressions suggest that a 2-​standard deviation inflow into stablecoins lowers 3-​month Treasury yields by 2-​2.​5 basis points within 10 days, with limited to no spillover effects on longer tenors. The effects are asymmetric (​stablecoin outflows raise yields by two to three times as much as inflows lower them) and have strengthened over time with the growth of the market. Decomposing the yield impact by issuer shows that USDT (​Tether) has the largest contribution followed by USDC (​Circle), consistent with their relative size. Our results highlight stablecoins' growing footprint in safe asset markets, with implications for monetary policy transmission, stablecoin reserve transparency, and financial stability."

The Introduction explains, "Dollar-​backed stablecoins have seen remarkable growth and are poised to reshape financial markets. As of March 2025, the combined assets under management of these cryptocurrencies promising par convertibility to the US dollar and backed by dollar-​denominated assets exceeded $​200 billion, with reserve positions in US Treasury bills (​T-​bills) of $​114 billion, surpassing the holdings of some major foreign investors and [​some individual] domestic money funds. Stablecoin issuers, notably Tether (​USDT) and Circle (​USDC), back their tokens primarily with US T-​bills and money market instruments, positioning them as significant players in short-​term debt markets. Indeed, dollar-​backed stablecoins purchased over $​35B of US T-​bills in 2024, similar to the largest US government money market funds and larger than most foreign purchases.... While prior research focuses on stablecoins' role in cryptocurrency volatility (​Griffin and Shams, 2020), their impact on commercial paper markets (​Barthelemy et al., 2023) or their systemic risks (​Bullmann et al., 2019), their interaction with traditional safe asset markets remains underexplored."

It tells us, "This paper investigates whether stablecoin flows exert measurable demand pressures on US Treasury yields. We document two key findings. First, stablecoin flows compress short-​term T-​bill yields, with effects comparable to that of small-​scale quantitative easing on long-​term yields. In our most stringent specification, which aims to overcome endogeneity concerns by using a series of crypto shocks that affect stablecoin flows but not Treasury yields directly, we find that 5-​day stablecoin inflows of $​3.​5B, or 2 standard deviations, lower 3-​month T-​bill yields by about 2-​2.​5 basis points (​bps) within 10 days. Second, we decompose yield impacts into issuer-​specific contributions to find that USDT has the largest contribution to T-​bill yield compression, followed by USDC. We discuss the policy implications of our findings for monetary policy transmission, stablecoin reserve transparency, and financial stability."

The paper says, "Our empirical analysis is based on daily data from January 2021 to March 2025. To construct a measure of stablecoin flows, we collect market capitalization data for the six largest dollar-​backed stablecoins and aggregate them into a single number. We then use 5-​day changes in aggregate stablecoin market capitalization as our proxy for inflows into stablecoins. We collect data on the US Treasury yield curve, as well as data on cryptocurrency prices (​Bitcoin and Ether). We choose the 3-​month Treasury bill yield as our outcome variable of interest as the largest stablecoins have either disclosed or publicly stated this tenor as their preferred habitat."

It comments, "A simple univariate local projection of changes in 3-​month T-​bill yields on 5-​day stablecoin flows is likely subject to severe endogeneity bias. Indeed, estimates from this '​naı​ve' specification suggest that a $​3.​5B inflow into stablecoins is associated with 3-​month T-​bill yields declining by up to 25 bps within 30 days. The magnitude of this impact is implausibly large, as it suggests that a 2-​standard deviation inflow into stablecoins has a similar impact on short-​term interest rates as a Federal Reserve policy rate cut. We argue that these large estimates can be explained by the presence of endogeneity that biases the estimates downward (​i.​e., larger negative estimates relative to the true effect), due to both omitted variable bias (​as potential confounders are not controlled for) and simultaneity bias (​as Treasury yields may affect flows into stablecoins)."

The paper then says, "Our findings have important implications for policy, not least if the stablecoin market continues to grow. Concerning monetary policy, our yield impact estimates suggest that if the stablecoin sector continues to grow rapidly, it may eventually affect the pass-​through of monetary policy to Treasury yields. Stablecoins' growing footprint in Treasury markets may also contribute to safe asset scarcity for non-​bank financial institutions, potentially affecting the liquidity premium (​D'​Avernas and Vandeweyer, 2024). Concerning stablecoin regulation, our results highlight the importance of transparent reserve disclosures that allow for the effective monitoring of concentrated stablecoin reserve portfolios. Finally, our results can be interpreted as evidence of stablecoins creating a bridge through which shocks to the cryptocurrency ecosystem transmit to traditional financial markets."

It explains, "There are potential financial stability implications that arise when stablecoins become large investors in Treasury markets. For one, it exposes the market to potential fire sales in the event of a run on a major stablecoin. Indeed, our estimates suggest that such asymmetric effects are already measurable. The magnitude of our estimates is likely to be a lower bound of potential fire sale effects, as they are obtained from a sample largely based on a growing market and thus likely underestimate the potential for non-​linear effects under severe stress. Moreover, part of the investments of stablecoins themselves for example through reverse repo agreements backed by Treasury collateral may facilitate arbitrage strategies such as the Treasury basis trade, a first order concern for regulators. Equity and liquidity buffers may alleviate some of these financial stability risks (​Goel et al., 2025; Liao et al., 2024)."

The piece adds, "Our work relates to research on the demand for safe assets. Krishnamurthy and Vissing-​Jorgensen (​2012) show that demand for liquidity and safety suppresses Treasury yields. Lower short-​term rates may in turn incentivize the issuance of risky short-​term debt, potentially undermining financial stability (​Greenwood et al., 2015). Doerr et al. (​2023) present evidence that money market funds (​MMFs) can influence the price of near-​money assets such as repos and Treasuries. Foreign demand has also been shown to affect Treasury yields (​Ahmed and Rebucci, 2024). Stablecoins, whose balance sheets look very similar to those of MMFs, may contribute to such effects, but their marginal impact remains unquantified despite their growing role in the market."

Finally, it states, "Moreover, we contribute to a growing body of work on stablecoins. Much of this literature studies stablecoin stability (​Arner et al., 2020; D’​Avernas et al., 2023; Lyons and Viswanath-​Natraj, 2023; Kosse et al., 2023), adoption (​Bertsch, 2023), runs (​Ahmed et al., 2025; Gorton et al., 2022) and market structure (​Ma et al., 2023), among others. Closer to our paper, Barthelemy et al. (​2023) and Kim (​2025a) study the effect of stablecoin investments in the commercial paper market. Our paper focuses instead on the reserve asset that has come to dominate major stablecoins' reserves, namely Treasury securities. In a contemporaneous paper, Kim (​2025b) presents evidence of the effect of Tether minting on Treasury exchange-​traded funds and use a macro-​finance model to argue for a potential non-​linear effect of stablecoins on the Treasury market if the former were to grow substantially."

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The U.​S. Treasury'​s Office of Financial Research published its "2025 Annual Report to Congress" yesterday, which includes a section on Money Markets and Money Market Funds. The press release, "OFR Releases 2025 Annual Report to Congress," states, "Today the Office of Financial Research (​OFR) published its 2025 Annual Report to Congress. As required by the Dodd-​Frank Wall Street Reform and Consumer Protection Act of 2010, this report provides an analysis of any threats to the financial stability of the United States, the status of the efforts of the OFR in meeting its mission, and key findings from the research and analysis of the financial system. The report covers the fiscal year ending September 30, 2025." (Note: Register soon for our upcoming Money Fund University, which is Dec. 18-​19 in Pittsburgh.)

The section on "Money Markets," explains, "Money markets offer savers and investors access to short-​term debt instruments with features like cash. Holders use these debt instruments to store value, to support their ability to make payments, and as collateral. Issuers use these debt instruments to manage the ebbs and flows of cash and to fund investments in other assets. While many money market participants are financial sector entities, they also play a crucial role in economic activity. Without functioning money markets, real-​economy investment and economic growth would be impaired."

It continues, "Money markets are liquid when lenders and borrowers can readily access and obtain funds. The primary vulnerability is associated with a sudden loss of confidence, which can lead to runs and asset fire sales, causing funding to become less available to money market borrowers. Money markets operated without signs of stress during 2025, much like in 2024. Repo and other money markets functioned without disruption in April 2025 despite substantial market volatility."

Discussing "Repurchase Agreements," the OFR writes, "A repo is a contract in which a market participant sells an asset with an agreement to buy it back. The price at which it is repurchased is typically higher than the selling price, providing the original buyer with the equivalent of an interest payment. This makes the original seller a cash borrower and the original buyer a cash lender. Repos are attractive to lenders because they are collateralized and short-​term; they are attractive to borrowers because they provide debt-​like financing at low interest rates. They also can be used to source securities."

They comment, "Repos are often issued with a one-​day or overnight term and rolled over. Overnight repos backed by Treasuries are a common source of funding in financial markets. Most repo market participants are financial firms, but the benefits of repo financing flow through to nonfinancial firms and to economic growth. Repo market vulnerabilities are modest."

The OFR tells us, "U.​S. repo markets are among the largest and most liquid short-​term funding markets in the world, with $​12.​6 trillion average daily outstanding positions in Q3 2025. Total private (​or non-​Federal Reserve) repo volume excluding NCCBR [​Non-​centrally cleared bilateral repo] has risen since 2021.... Part of the increase in private repo is a result of declines in Federal Reserve Overnight Reverse Repo Facility (​ON RRP) balances."

It explains, "Though the Federal Reserve primarily uses the ON RRP facility to implement monetary policy, the facility also helps to anchor rates in the repo market. This is because the Federal Reserve'​s ON RRP and Standing Repo facilities also serve as backstops for repos and reverse repos involving the most important types of repo collateral. Thus, the impact of any repo market disruptions on repo market borrowers and lenders would be limited. As ON RRP balances have declined, rates have increased and become more volatile."

The OFR report says, "A portion of repo volume is the basis for calculating the Secured Overnight Financing Rate (​SOFR).... The repo market is comprised of four segments which are distinguished by whether they are settled via a third party (​tri-​party) and cleared by a clearinghouse or CCP.... Regulators previously collected data for three of the four segments to monitor vulnerabilities, and the OFR is now able to monitor the remaining segment through its permanent data collection of NCCBR trades, which began in December 2024. Dealers stand in the middle of repo markets. They are intermediaries for cash and collateral across the segments. They borrow cash secured by collateral from one counterparty in a reverse repo transaction and relend that cash for collateral to another counterparty in a repo transaction."

It states, "If large lenders suddenly decide not to roll over repo, borrowers, many of which are securities dealers, must quickly find other sources of financing or sell assets, which may transmit repo market stress to other markets. For example, many dealers lend to hedge funds using funds borrowed through repos with MMFs. Withdrawals from MMFs can quickly transmit to hedge funds via repo markets. Dealers and other market participants actively manage these risks."

A segment on "Commercial Paper" says, "Most commercial paper (​CP) is issued by financial institutions and asset-​backed structures and not by nonfinancial corporations.... CP provides nonfinancial firms with flexible, low-​cost, short-​term funding that aids management of the daily ebbs and flows of such firms’ cash flows, thereby improving business efficiency and economic growth. Asset-​backed commercial paper (​ABCP) funds invest in certain types of loans, such as auto loans and credit card receivables, that benefit from portfolio diversification and are more efficiently financed off the balance sheets of traditional financial institutions. Financial CP is a source of on-​balance-​sheet funding for financial institutions, typically foreign banks. Financial CP and ABCP improve the efficiency of the financial system and, thus, support economic activity and growth."

OFR states, "U.​S. dollar-​denominated CP outstanding was $​1.​3 trillion at the end of September 2025, according to the Federal Reserve, which was little changed from recent years. Because CP is short-​term, investors usually hold the paper to maturity. CP vulnerabilities include those associated with runs and maturity transformation. These vulnerabilities are structural and do not change much over time."

They explain, "​A primary cause of runs is a sudden change in views about CP issuer creditworthiness. The large decline in outstanding CP during the 2007-​09 financial crisis was associated with a loss of confidence in some types of ABCP outstanding at the time. In 2025, most issuers of financial CP have backup sources of financing that increase confidence in their ability to repay CP, and ABCP vehicles largely finance more stable, well-​understood assets, increasing market understanding and confidence in them."

Under "Money Market Funds," the OFR writes, "MMFs are open-​end mutual funds that accept investments from households, businesses, and government entities. MMFs support the real economy by offering low-​risk, liquid investment options for managing short-​term cash balances. This enhances financial flexibility and resilience of their investors while indirectly providing issuers with support for their operations and growth. This support is through MMF purchases of short term paper, such as commercial paper, repos, and Treasury bills that help to maintain market liquidity and efficient capital allocation. Their vulnerabilities are smaller than in the past because of recent regulatory changes."

They comment, "Withdrawals from MMFs are usually settled the same day or overnight, and balances can be moved quickly to another investment, although regulations allow settlements to be delayed by as much as seven days. Investors in MMFs often use them as cash substitutes. MMF assets were about $​7.​8 trillion as of September 2025.... MMF vulnerabilities are driven by run risk. MMFs can experience runs if their investors become concerned that they may not be able to withdraw funds on demand at a net asset value (​NAV) of $​1 per share. One way to prevent run behavior is for MMFs to invest solely in money market instruments with a one-​day maturity and issued by entities certain to repay on time. As a practical matter, a sizable share of MMF investments have maturity dates longer than one day, and prime MMFs' investments pose some credit risk."

The report says, "The SEC revised regulations in 2023 with the goal of improving the resiliency and transparency of MMFs. For example, prime MMFs must now hold a larger share of their assets in investments that mature within one day and within one week. This increases MMFs' ability to maintain market confidence by meeting large redemption requests without disruptions. But even if new regulations ensure that MMFs are able to satisfy large, sudden redemption requests, financial stability vulnerabilities associated with MMFs remain because if such redemptions occur, MMFs' sharply smaller assets would affect the provision of short term credit and, thus, would affect real activity and investment."

It also tells us, "Institutional and retail prime funds differ from U.​S. government funds because they may invest a large share of portfolio assets in unsecured obligations of private-​sector entities. Though such investments are relatively safe, they carry more credit risk than U.​S. government obligations. Over the last 25 years, prime funds have experienced more runs than government funds. The most recent episode was in March 2020."

Finally, the OFR adds, "Several types of institutional MMFs are required to sell and redeem their shares at market-​based NAVs, but some investors may be concerned that NAVs will fall well below the value at which they purchased shares and withdraw before that happens. In earlier periods of stress, MMF sponsors played a critical role in preventing NAVs from falling below $​1, for example, by buying assets from their affiliated MMF at above market prices or by providing guarantees (​a sponsor is typically the operator of a mutual fund complex but may also be a bank or other financial institution that is associated with an MMFs' brand). Sponsors have also mitigated potential spillovers to affiliate funds and short-​term funding markets more broadly."

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State Street Investment Management is the fourth money fund manager to launch a Stablecoin Reserves money market fund, following BlackRock'​s Circle Treasury Reserves, and Stablecoin Reserves offerings from Goldman Sachs and BNY. A Form N-​1A Registration Statement for the pending State Street Stablecoin Reserves Money Market Fund tells us, "The investment objective of State Street Stablecoin Reserves Money Market Fund ... is to seek a high level of current income consistent with preserving principal and liquidity and the maintenance of a stable $​1.​00 per share net asset value. The Fund, which is advised by SSGA Funds Management, Inc., invests in assets in which payment stablecoin issuers are permitted to invest in under a U.​S. law enacted in July 2025 designed to establish a framework of these issuers and any regulation adopted thereunder (​the '​GENIUS Act')."

It continues, "These eligible investments include U.​S. Treasury bills, notes and bonds ('​U.​S. Treasury Obligations') with a remaining maturity of 93 days or less or issued with a maturity of 93 days or less, as well as repurchase agreements secured by U.​S. Treasury Obligations. The Fund may invest in any other assets that qualify as eligible investments under the GENIUS Act (​and any regulations thereunder) and that are permitted under Rule 2a-​7 for a government money market fund. The Fund does not invest in stablecoins. The Fund may hold a portion of its assets in cash pending investment, to satisfy redemption requests or to meet the Fund'​s other cash management needs."

State Street says, "The Fund invests in accordance with regulatory requirements applicable to money market funds, which require, among other things, the Fund to maintain a maximum dollar-​weighted average maturity and dollar-​weighted average life of sixty (​60) days or less and 120 days or less, respectively, and to meet requirements as to portfolio diversification and liquidity."

They write, "The Fund is a '​government money market fund,' ​so it will invest at least 99.​5% of its total assets in cash, government securities, and/​or repurchase agreements that are collateralized fully. Government money market funds are exempt from requirements that permit and, under certain circumstances, require money market funds to impose a '​liquidity fee' ​on redemptions. As a '​government money market fund,' ​the Fund values its securities using the amortized cost method. The Fund will seek to maintain a stable value of $​1.​00 per share, however it cannot guarantee it will do so."

State Street'​s filing adds, "Fund Shares are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the stablecoins issued to their customers. 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 are relatively new and stablecoins or 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 Fund Shares. Because the Fund intends to invest only in eligible investments, the Fund'​s yield may be lower than other money market funds that are permitted to invest in a wider universe of investments."

Mutual fund news firm ignites first wrote on the news in "State Street Joins '​Flurry of Filings' for Stablecoin Fund." They tell us, "State Street Investment Management plans to launch a stablecoin reserve money market fund, the firm disclosed Friday. The State Street Stablecoin Reserves Money Market Fund would invest in U.​S. Treasury bills, notes and bonds and other assets that qualify under the Genius Act passed by Congress in July, the filing says.... The filing does not state what stablecoins the reserve fund would back.

The piece states, "The Genius Act created a more robust framework around stablecoin reserves, specifically limiting risks by forcing issuers to back each stablecoin with a reserve of assets and also limiting the types of reserve assets. It also streamlined custodial operations, forcing them to be safeguarded by regulated entities like banks. The law also prevents stablecoin issuers from offering any interest or yield to investors as a way to prevent them from competing directly with money market funds."

Ignites adds, "The firm also joins a growing queue of shops that have filed for similar products. In August, BNY filed for its own stablecoin money market fund. Goldman Sachs followed up with its own filing in October. WisdomTree and BlackRock, meanwhile, have disclosed plans to revamp existing products to meet requirements under the Genius Act. 'There'​s been a flurry of filings,' said Pete Crane, president of Crane Data. Rolling out a stablecoin reserve fund is '​the easiest way for money market funds to get a sheen of stablecoin without too much heavy lifting.'"

For more on Stablecoin Reserve funds, see these Crane Data News stories: "BNY Stablecoin Reserves Goes Live; ICI: Assets Eke Out Record $​7.​5T" (​11/​14/​25), "TD Securities Writes on Stablecoins, Tokenized Money Funds, Digital" (​11/​5/​25), "Northern Earnings Discuss Deposits, Tokenized Money Funds, Offshore" (​10/​24/​25), "BNY'​s Vince on Q3 Call: Money Market Evolution, Dreyfus, Stablecoins" (​10/​22/​25), "BlackRock Breaks $​1 Trillion in Money Funds; Offers Stablecoin Reserve" (​10/​17/​25), "Capital Advisors Group'​s Pan Comments on Laddered SMAs, Stablecoins" (​10/​6/​25), "More Liberty Street Economics: Cautionary Historical Tale on Stablecoins" (​10/​2/​25), "IMMFA on Tokenization of MMFs in Europe; Tether USDT; Fidelity Digital" (​9/​22/​25), "Sept. MFI: Assets Break $​7.​6T; Stablecoin Reserves; JPM on Offshore MFs" (​9/​8/​25), "Goldman Sachs: Summer of Stablecoin; FT: Banks Lobby to Block Interest" (​8/​26/​25), "FOMC Minutes: RRP, Bills, Stablecoins" (​8/​21/​25), "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle" (​8/​20), "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (​8/​13/​25), "August MFI: BNY Portal Tokenizes; ICD'​s Tory Hazard; Stablecoins in Q2" (​8/​7/​25) and "BNY'​s Liquidity Direct Portal Announces Plans to Tokenize Money Funds" (​7/​24/​25).

In related news, Bloomberg posted an interview with BNY'​s Stephanie Pierce titled, "BNY Launches New Money Market Fund for Stablecoin Issuers." Pierce tells them, "The Genius Act was a landmark legislation that really removed a key barrier to the growth of stablecoins and issuance in the US, which was really creating that regulatory framework that everyone'​s been needing and wanting to understand how to structure these.... What we'​ve launched with the BNY Dreyfus Stablecoin Reserves Fund ... is essentially a way for stablecoin issuers to access the same liquidity, resiliency, and stability of our money funds and also comply with the reserve requirements in the Genius Act.... Just to be specific, the difference between this money fund and the traditional money fund is that the maturity of the US Treasury securities must be 93 days or less, which is a little bit shorter than a traditional money fund."

Bloomberg mentions Tether and Circle, and asks, "But you think about the variety of stablecoin issuers out there, theoretically this money market fund is for any number of them?" Pierce replies, "​We do believe there will be many more of them. In fact, BNY just published a ... primer or an outlook on the digital asset industry and what we think will happen. And in that, we talk a little bit about this space, not just tokenized money funds, but the sort of what we call programmable money complex -- so tokenized money funds, stablecoins, tokenized deposits. And our projection is that we could see that entire sort of set of programmable money and cash equivalents grow to as much as $​3.​6 trillion in five years, that'​s 2030."

She comments on stablecoin issuers, "So if you think about it right, they have the choice of either investing in these types of securities themselves or actually using a money fund. And so if you think of what the core business of a stablecoin issuer is, it'​s probably not to invest in the securities themselves. So they'​d much rather use a proven and trusted [​provider]."

Pierce adds, "Cash and liquidity are the lifeblood of a custody bank -- it'​s what runs through the arteries and veins of our ecosystem at BNY. [​About] 20% of global capital market assets ... traffic through BNY'​s infrastructure every single day. So really what we'​re doing as BNY is trying to bridge the traditional infrastructure that the whole financial industry traffics on to the digital infrastructure. And cash is the cornerstone of the digital ecosystem that allows you to move from one to the other.... Cash, which is the lifeblood of our bank, is what gets us there."

Finally, she tells Bloomberg, "From a cyclical perspective, cash is pretty attractive right now, right? In a money market fund, you'​re getting almost a four percent yield, notwithstanding what the Fed may or may not do in December. And relative to both the volatility and predictability and sort of safety and soundness of other asset classes, it still looks pretty attractive.... What'​s really most exciting about it is cash is really at the vortex of all of this change. It'​s facilitating and enabling the rails of today to become the rails of tomorrow."

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Crane Data'​s latest Money Fund Intelligence International shows that assets in European or "​offshore" money market mutual funds increased over the past 30 days to a new record high $​1.​597 trillion, rising from $​1.​558 trillion the month prior. Yields inched lower, while assets for USD and GBP MMFs rose and EUR MMFs fell over the past month. Like U.​S. money fund assets, European MMFs have repeatedly hit record highs in 2023, 2024 and 2025 (​after a pause in Q2'​25). These U.​S.-​style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $​29.​0 billion over the 30 days through 11/​14. The totals are up $​164.​4 billion (​11.​5%) year-​to-​date for 2025, they were up $​235.​3 billion (​19.​7%) for 2024 and up $​166.​9 billion (​16.​2%) for the year 2023. (​Note that currency moves in the U.​S. Dollar cause Euro and Sterling totals to shift when they'​re translated back into totals in USD. See our latest MFI International for more on the "​offshore" money fund marketplace. These funds are only available to qualified, non-​U.​S. investors and are almost entirely institutional.)

Offshore US Dollar money funds increased $​5.​7 billion over the last 30 days and are up $​106.​0 billion YTD to $​849.​6 billion; they increased $​94.​1 billion in 2024. Euro funds decreased E8.​9 billion over the past month. YTD, they'​re up E8.​0 billion to E325.​7 billion, for 2024, they increased by E82.​9 billion. GBP money funds increased L181 million over 30 days, and they'​re up L21.​6 billion YTD at L276.​3B, for 2024, they rose L19.​3 billion. U.​S. Dollar (​USD) money funds (​291) account for over half (​53.​2%) of the "​European" money fund total, while Euro (​EUR) money funds (​212) make up 22.​2% and Pound Sterling (​GBP) funds (​198) total 22.​5%. We summarize our latest "​offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (​which went out to subscribers Monday), below.

Offshore USD MMFs yield 3.​89% (​7-​Day) on average (​as of 11/​14/​25), down 15 bps from a month earlier. Yields averaged 4.​20% on 12/​30/​22 and 0.​03% on 12/​31/​21. EUR MMFs, which left negative yield territory in the second half of 2022, yield 1.​90% on average, unchanged from a month ago and up from 1.​48% on 12/​30/​22 and -​0.​80% on 12/​31/​21. Meanwhile, GBP MMFs broke above the 5.​0% barrier 27 months ago, but they broke back below 5.​0% 16 months ago. They now yield 3.​96%, down 1 bp from a month ago, but up from 3.​17% on 12/​30/​22. Sterling yields were 0.​01% on 12/​31/​21.

Crane'​s November MFI International Portfolio Holdings, with data as of 10/​31/​25, show that European-​domiciled US Dollar MMFs, on average, consist of 26% in Commercial Paper (​CP), 16% in Certificates of Deposit (​CDs), 27% in Repo, 18% in Treasury securities, 11% in Other securities (​primarily Time Deposits) and 2% in Government Agency securities. USD funds have on average 49.​2% of their portfolios maturing Overnight, 4.​4% maturing in 2-​7 Days, 6.​3% maturing in 8-​30 Days, 7.​7% maturing in 31-​60 Days, 9.​3% maturing in 61-​90 Days, 14.​9% maturing in 91-​180 Days and 8.​1% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the U.​S. (​39.​7%), France (​9.​7%), Canada (​9.​5%), Japan (​9.​4%), Australia (​5.​5%), the U.​K. (​5.​2%), the Netherlands (​3.​8%), Germany (​3.​8%), Sweden (​3.​0%) and Finland (​2.​2%).

The 10 Largest Issuers to "​offshore" USD money funds include: the US Treasury with $​154.​6B (​18.​2%), Fixed Income Clearing Corp with $​52.​6B (​6.​2%), JP Morgan with $​36.​2B (​4.​3%), Credit Agricole with $​28.​1B (​3.​3%), Barclays PLC with $​24.​9B (​2.​9%), Toronto-​Dominion Bank with $​19.​8B (​2.​3%), Mizuho Corporate Bank Ltd with $​19.​2B (​2.​3%), Australia & New Zealand Banking Group Ltd with $​17.​8B (​2.​1%), Nordea Bank with $​17.​5B (​2.​1%) and Wells Fargo with $​17.​3B (​2.​0%).

Euro MMFs tracked by Crane Data contain, on average 39% in CP, 24% in CDs, 13% in Other (​primarily Time Deposits), 21% in Repo, 3% in Treasuries and 0% in Agency securities. EUR funds have on average 36.​1% of their portfolios maturing Overnight, 8.​5% maturing in 2-​7 Days, 11.​2% maturing in 8-​30 Days, 7.​8% maturing in 31-​60 Days, 13.​2% maturing in 61-​90 Days, 15.​2% maturing in 91-​180 Days and 8.​1% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (​26.​5%), the U.​S. (​11.​4%), Japan (​9.​8%), Canada (​9.​0%), the Netherlands (​6.​7%), Germany (​5.​2%), the U.​K. (​4.​9%), Australia (​4.​5%), Finland (​3.​8%) and Belgium (​3.​6%).

The 10 Largest Issuers to "​offshore" EUR money funds include: BNP Paribas with E15.​5B (​5.​3%), JP Morgan with E14.​4B (​5.​0%), Credit Agricole with E14.​0B (​4.​8%), ING Bank with E9.​9B (​3.​4%), Societe Generale with E9.​6B (​3.​3%), Agence Central de Organismes de Securite Sociale with E8.​2B (​2.​8%), Nordea Bank with E7.​4B (​2.​6%), Mizuho Corporate Bank Ltd with E7.​0B (​2.​4%), Bank of Nova Scotia with E6.​9B (​2.​4%) and KBC Group NV with E6.​8B (​2.​4%).

The GBP funds tracked by MFI International contain, on average (​as of 10/​31/​25): 38% in CDs, 19% in CP, 20% in Other (​Time Deposits), 18% in Repo, 4% in Treasury and 1% in Agency. Sterling funds have on average 36.​1% of their portfolios maturing Overnight, 8.​0% maturing in 2-​7 Days, 8.​9% maturing in 8-​30 Days, 7.​2% maturing in 31-​60 Days, 14.​1% maturing in 61-​90 Days, 17.​8% maturing in 91-​180 Days and 7.​9% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: Japan (​14.​8%), France (​14.​3%), the U.​K. (​13.​0%), Canada (​11.​5%), the U.​S. (​10.​8%), Australia (​8.​8%), the Netherlands (​5.​0%), Singapore (​3.​4%), Germany (​2.​9%) and Finland (​2.​8%).

The 10 Largest Issuers to "​offshore" GBP money funds include: UK Treasury with L19.​5B (​7.​8%), Sumitomo Mitsui Banking Corp with L9.​9B (​4.​0%), Mizuho Corporate Bank Ltd with L9.​7B (​3.​9%), RBC with L9.​2B (​3.​7%), JP Morgan with L8.​3B (​3.​3%), BNP Paribas with L8.​0B (​3.​2%), National Australia Bank Ltd with L7.​8B (​3.​1%), Sumitomo Mitsui Trust Bank with L7.​5B (​3.​0%), Citi with L7.​2B (​2.​8%) and Australia & New Zealand Banking Group Ltd with L6.​9B (​2.​8%).

​

The November issue of our Bond Fund Intelligence, which was sent to subscribers Monday a.​m., features the stories, "Muni Bond Funds Battered But Making a Comeback," which details the challenges and recent rebound of tax exempt bond funds; and "PIMCO'​s Sonali Pier Talks Multisector BFs w/​Barron'​s," which excerpts from an interview on strategy and credit markets. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns were higher again in October while yields moved lower. We excerpt from the new issue below. (Contact us if you’​d like to see our latest Bond Fund Intelligence and BFI XLS spreadsheet, or our Bond Fund Portfolio Holdings data.)

BFI'​s lead article states, "Morningstar writes that, 'Muni Bonds Are Looking Better,' and states, 'Despite offering historically attractive after tax yields, municipal bonds were one of the worst-​performing sectors in the fixed-​income market through the first nine months of 2025. It'​s been a risk-​off year for munis: While the median total return for a strategy in the intermediate core bond and high-​yield bond Morningstar Categories was 6.​0% and 6.​7%, respectively, through September 2025, the same measure for the muni-​national long and the high-​yield muni categories reflected modest gains of 1.​7% and 1.​3%.'"

It continues, "​They tell us, 'Significant amounts of new municipal-​bond issuance (​on pace for the largest annual total since 2017), lukewarm investor demand, and underperformance versus Treasuries all pressured prices. Additionally, narrowing credit spreads in the already crowded high-​yield muni sector as we entered the year, and some deterioration in credit quality for a few larger issuers left less upside as investors ventured lower down the credit spectrum.'"

Our "PIMCO'​s Sonali Pier" article states, "Barron'​s recently interviewed PIMCO'​s Sonali Pier, who manages multisector bond funds, in the article, 'A 6% Yield Without Much Risk? This Bond Fund Manager Knows Where to Find It.' They write, 'Fixed-​income investors got a one-​two punch in mid-​October: first, with the bankruptcy-​protection filing of First Brands, a heavily indebted auto-​parts company, and then, separately, when two regional banks had to write down losses on bad loans.... With characteristic understatement [​Pier] tells Barron'​s, '​We had some conversations about it.'"

It continues, "​The piece explains, 'The task at hand wasn’​t just to review holdings in the bond portfolios she oversees, including the $​8.​5 billion Pimco Multisector Bond Active exchange-​traded fund, but to prepare for investment opportunities to emerge. She isn'​t looking for distressed bonds at bargain prices. Instead, she wants to be in a position to add more high-​quality bonds -- the good stuff that other investors may have no choice but to sell when facing redemptions.'"

Our first News brief, "Returns Higher, Yields Down Again," states, "Bond fund returns were higher again in October and yields moved lower. Our BFI Total Index rose 0.​59% over 1-​month and rose 5.​93% over 12 months. (Money funds rose 4.​24% over 1-​year as measured by our Crane 100 Index.) The BFI 100 increased 0.​58% in Oct. and rose 6.​49% over 12 mos. Our BFI Conservative Ultra-​Short Index was up 0.​36% over 1-​month and 4.​86% for 1-​year; Ultra-​Shorts rose 0.​34% and 5.​12%. Short-​Term gained 0.​34% and 5.​92%, and Intm-​Term rose 0.​66% in Oct. and 6.​74% over 12 mos. BFI’​s Long-​Term Index was up 0.​60% and up 6.​40%. High Yield returned 0.​35% in Oct. and 7.​19% over 12 months."

A second News brief, "The NY Times Writes: 'Bonds Should Be Boring. But They'​ve Been on a Roller Coaster.' The column explains, 'Bonds are supposed to be dull, churning out income with soothing regularity. `​But many bond investors have been having a distressing experience lately. For several years, bond prices have been lurching like an out-​of-​control roller coaster, and holders of bond mutual funds and exchange-​traded funds have endured an exceptionally wrenching ride. Bond prices and yields ... move in opposite directions, and because rates have fallen this autumn, there'​s actually some good news for bond investors. For the year so far, the investment-​grade bond benchmark, the Bloomberg U.​S. Aggregate Bond Index, has returned more than 7 percent, including dividends.'"

Another brief states: "'AllianceBernstein Enhances ETF Offerings with Two New Fixed Income Conversions,' says a press release. It explains, 'AllianceBernstein ... announced today the launch of two actively managed exchange-​traded funds (​ETFs) on the New York Stock Exchange: AB New York Intermediate Municipal ETF (​NYM) and AB Core Bond ETF (​CORB).'"

A BFI sidebar, "Barron'​s Credit Complacency," says, "Barron'​s Asks, 'Can Anything Shake Financial Market Complacency? Credit Stress Couldn'​t Seem to Do It.' The piece states, 'A series of bankruptcies, bad loans, and allegations of fraud by borrowers this month have spooked investors in private credit, a murky, multi-​trillion dollar industry where private companies borrow directly from wealthy investors and regional banks, which also lend to private companies. JPMorgan Chase CEO Jamie Dimon warned last week that more credit risks or '​cockroaches' could be lurking in the economy.'"

Finally, another sidebar, "SSIM: Future of Fixed-​Income," says, "State Street Investment Management writes, 'From income to outcomes: The evolution and future of fixed income.' The recent 'Insight' tells us, '​Fixed income has undergone a profound transformation in recent years. Once useful mainly for generating income and hedging equity risks, the asset class now plays central roles in portfolios that solve specific, complex challenges for institutional investors.'"

​

A press release titled, "BNY Launches Stablecoin Reserves Fund, Further Expanding BNY'​s Leadership in Digital Assets," tells us, "BNY ... announced the launch of the BNY Dreyfus Stablecoin Reserves Fund (​BSRXX), a money market fund created to support institutional adoption of digital assets in the liquidity space. The fund is intended to enable U.​S. stablecoin issuers and other qualified institutional investors acting for themselves or in a fiduciary, advisory, agency, brokerage, custodial, or similar capacity. The fund is designed to hold the reserves for stablecoins to be issued under the Guiding and Establishing National Innovation for U.​S. Stablecoins ('​GENIUS') Act. The fund does not invest in stablecoins." (​See Crane Data'​s August 20 News, "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle.")

BNY'​s release explains, "The stablecoin market is expected to grow significantly over the next three to five years, enabled by the GENIUS Act, which provides a regulatory framework for US stablecoin issuers, as well as increasing client adoption. Analysis suggests that the stablecoin market could reach $​1.​5 trillion by 2030."

Stephanie Pierce, Deputy Head of BNY Investments, comments, "Cash is the cornerstone of the digital asset ecosystem, enabling global capital markets to move toward an always-​on, 24/​7 environment. Stablecoins are at the forefront of this profound transformation, and we are proud to provide our liquidity leadership and expertise to stablecoin issuers with the launch of the BNY Dreyfus Stablecoin Reserves Fund."

The release continues, "As part of the launch, the fund has secured an initial investment from Anchorage Digital, a global cryptocurrency platform that enables institutions to transact in digital assets. Anchorage Digital is the first federally chartered crypto bank in the U.​S."

Nathan McCauley, Co-​Founder and CEO of Anchorage Digital, states, "Anchorage Digital is proud to provide the initial investment for this important initiative. BNY'​s leadership in liquidity and the GENIUS Act framework together mark a new chapter for stablecoin infrastructure in the U.​S. As the first federally chartered crypto bank, we see efforts like this as essential to bridging the trust, transparency, and regulatory rigor that will define the next era of digital finance."

The release adds, "BNY Investments Dreyfus is the affiliated liquidity solutions provider of BNY and the flagship offering on BNY'​s industry-​leading Liquidity Direct platform. A top 10 US money market fund sponsor, BNY Investments Dreyfus supports stablecoin issuers by providing regulated money market funds as eligible reserves.... A recognized leader in digital assets, BNY provides fund services for over 80% of the digital asset exchange-​traded products in the U.​S., Canada and EMEA, and provides fund administration and custody for over 50% of the tokenized fund assets globally."

For more on Stablecoin Reserve funds, see these Crane Data News stories: "TD Securities Writes on Stablecoins, Tokenized Money Funds, Digital" (​11/​5/​25), "Northern Earnings Discuss Deposits, Tokenized Money Funds, Offshore" (​10/​24/​25), "BNY'​s Vince on Q3 Call: Money Market Evolution, Dreyfus, Stablecoins" (​10/​22/​25), "BlackRock Breaks $​1 Trillion in Money Funds; Offers Stablecoin Reserve" (​10/​17/​25), "Capital Advisors Group'​s Pan Comments on Laddered SMAs, Stablecoins" (​10/​6/​25), "More Liberty Street Economics: Cautionary Historical Tale on Stablecoins" (​10/​2/​25), "IMMFA on Tokenization of MMFs in Europe; Tether USDT; Fidelity Digital" (​9/​22/​25), "Sept. MFI: Assets Break $​7.​6T; Stablecoin Reserves; JPM on Offshore MFs" (​9/​8/​25), "Goldman Sachs: Summer of Stablecoin; FT: Banks Lobby to Block Interest" (​8/​26/​25), "FOMC Minutes: RRP, Bills, Stablecoins" (​8/​21/​25), "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (​8/​13/​25), "August MFI: BNY Portal Tokenizes; ICD'​s Tory Hazard; Stablecoins in Q2" (​8/​7/​25) and "BNY'​s Liquidity Direct Portal Announces Plans to Tokenize Money Funds" (​7/​24/​25).

In other news, the Investment Company Institute'​s latest weekly "Money Market Fund Assets" report shows money fund assets increasing by $​1.​8 billion and reaching a new record high of $​7.​536 trillion after breaking above the $​7.​5 trillion level for the first time the week prior. Assets have risen in 7 of the last 8 weeks, and 15 of the past 17 weeks. MMFs rose $​116.​4 billion last week, after increasing $​20.​6 billion two weeks ago. MMF assets are up by $​866 billion, or 13.​0%, over the past 52 weeks (​through 11/​12/​25), with Institutional MMFs up $​505 billion, or 12.​6% and Retail MMFs up $​361 billion, or 13.​6%. Year-​to-​date, MMF assets are up by $​686 billion, or 10.​0%, with Institutional MMFs up $​398 billion, or 9.​7% and Retail MMFs up $​288 billion, or 10.​5%.

ICI'​s weekly release says, "Total money market fund assets increased by $​1.​82 billion to $​7.​54 trillion for the week ended Wednesday, November 12, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $​1.​58 billion and prime funds decreased by $​1.​26 billion. Tax-​exempt money market funds increased by $​1.​51 billion." ICI'​s stats show Institutional MMFs decreasing $​3.​0 billion and Retail MMFs increasing $​4.​8 billion in the latest week. Total Government MMF assets, including Treasury funds, were $​6.​180 trillion (​82.​0% of all money funds), while Total Prime MMFs were $​1.​213 trillion (​16.​1%). Tax Exempt MMFs totaled $​143.​7 billion (​1.​9%).

It explains, "Assets of retail money market funds increased by $​4.​81 billion to $​3.​02 trillion. Among retail funds, government money market fund assets increased by $​1.​00 billion to $​1.​90 trillion, prime money market fund assets increased by $​1.​89 billion to $​990.​78 billion, and tax-​exempt fund assets increased by $​1.​91 billion to $​131.​47 billion." Retail assets account for 40.​1% of the total, and Government Retail assets make up 62.​9% of all Retail MMFs.

They add, "Assets of institutional money market funds decreased by $​2.​99 billion to $​4.​51 trillion. Among institutional funds, government money market fund assets increased by $​578 million to $​4.​28 trillion, prime money market fund assets decreased by $​3.​16 billion to $​222.​40 billion, and tax-​exempt fund assets decreased by $​406 million to $​12.​21 billion." Institutional assets accounted for 59.​9% of all MMF assets, with Government Institutional assets making up 94.​8% of all institutional MMF totals.

According to Crane Data'​s separate Money Fund Intelligence Daily series, money fund assets have increased by $​69.​2 billion to $​7.​919 trillion month-​to-​date in November (​as of 11/​12). They hit a record high of $​7.​925 trillion on November 4, but have dipped slightly since. Assets increased by $​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 in May. MMFs fell by $​24.​4 billion in April, but rose $​2.​8 trillion in March, $​94.​2 billion in February and $​52.​8 billion in January. They jumped $​110.​9 billion in December, $​200.​5 billion last November. 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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Crane Data'​s November Money Fund Portfolio Holdings, with data as of Oct. 31, 2025, show that holdings of Treasuries jumped while Repo exposure inched lower. Money market securities held by Taxable U.​S. money funds (​tracked by Crane Data) increased by $​158.​4 billion to $​7.​753 trillion in October, after increasing $​56.​1 billion in September, $​166.​6 billion in August, $​17.​6 billion in July, $​84.​0 billion in June and $​72.​0 billion in May. They decreased by $​73.​8 billion in April. Assets rose by $​45.​6 billion in March, $​53.​7 billion in February, $​84.​1 billion in January and $​88.​0 billion in December. Treasuries, the largest portfolio composition segment, increased by $​180.​5 billion. Repo, the second largest segment, decreased $​6.​0 billion in October. Agencies were the third largest segment, and CP remained fourth, ahead of CDs, Other/​Time Deposits and VRDNs. Below, we review our Money Fund Portfolio Holdings statistics. (​Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)

Among taxable money funds, Treasury securities increased $​180.​5 billion (​5.​6%) to $​3.​397 trillion, or 43.​8% of holdings, after increasing $​78.​0 billion in September, increasing $​414.​3 billion in August, increasing $​117.​3 billion in July, decreasing $​98.​4 billion in June and decreasing $​2.​1 billion in May. Repurchase Agreements (​repo) decreased $​6.​0 billion (-​0.​2%) to $​2.​757 trillion, or 35.​6% of holdings, in October, after increasing $​27.​2 billion in September, decreasing $​236.​2 billion in August, decreasing $​128.​1 billion in July, increasing $​194.​2 billion in June and increasing $​63.​3 billion in May. Government Agency Debt was down $​2.​8 billion, or -​0.​3%, to $​987.​4 billion, or 12.​7% of holdings. Agencies increased $​22.​8 billion in September, decreased $​18.​7 billion in august, increased $​0.​8 billion in July, $​8.​8 billion in June and $​4.​8 billion in May. Repo, Treasuries and Agency holdings now total $​7.​142 trillion, representing 92.​1% of all taxable holdings.

Money fund holdings of CP and CDs rose while Other (​mainly Time Deposits) fell in October. Commercial Paper (​CP) increased $​2.​0 billion (​0.​7%) to $​305.​5 billion, or 3.​9% of holdings. CP holdings decreased $​18.​3 billion in September, increased $​7.​6 billion in August, increased $​12.​3 billion in July and decreased $​9.​7 billion in June. Certificates of Deposit (​CDs) increased $​0.​1 billion (​0.​1%) to $​189.​5 billion, or 2.​4% of taxable assets. CDs decreased $​16.​5 billion in September, increased $​3.​4 billion in August, increased $​1.​9 billion in July and decreased $​2.​1 billion in June. Other holdings, primarily Time Deposits, decreased $​15.​8 billion (-​13.​5%) to $​101.​2 billion, or 1.​3% of holdings, after decreasing $​36.​8 billion in September, decreasing $​4.​4 billion in August, increasing $​13.​0 billion in July and decreasing $​8.​7 billion in June. VRDNs increased to $​15.​6 billion, or 0.​2% of assets. (​Note: This total is VRDNs for taxable funds only. We will post our Tax Exempt MMF holdings separately Thursday around noon.)

Prime money fund assets tracked by Crane Data increased to $​1.​327 trillion, or 17.​1% of taxable money funds' $​7.​753 trillion total. Among Prime money funds, CDs represent 14.​3% (​down from 14.​4% a month ago), while Commercial Paper accounted for 23.​0% (​unchanged from 23.​0% a month ago). The CP totals are comprised of: Financial Company CP, which makes up 14.​2% of total holdings, Asset-​Backed CP, which accounts for 7.​1%, and Non-​Financial Company CP, which makes up 1.​7%. Prime funds also hold 0.​5% in US Govt Agency Debt, 7.​9% in US Treasury Debt, 22.​6% in US Treasury Repo, 1.​1% in Other Instruments, 4.​5% in Non-​Negotiable Time Deposits, 10.​6% in Other Repo, 14.​3% in US Government Agency Repo and 0.​9% in VRDNs.

Government money fund portfolios totaled $​4.​217 trillion (​54.​4% of all MMF assets), up from $​4.​143 trillion in September, while Treasury money fund assets totaled another $​2.​205 trillion (​28.​4%), up from $​2.​132 trillion the prior month. Government money fund portfolios were made up of 23.​2% US Govt Agency Debt, 16.​2% US Government Agency Repo, 36.​7% US Treasury Debt, 23.​4% in US Treasury Repo, 0.​4% in Other Instruments. Treasury money funds were comprised of 79.​1% US Treasury Debt and 20.​8% in US Treasury Repo. Government and Treasury funds combined now total $​6.​422 trillion, or 82.​8% of all taxable money fund assets.

European-​affiliated holdings (​including repo) increased by $​79.​7 billion in October to $​728.​9 billion; their share of holdings rose to 9.​4% from last month'​s 8.​6%. Eurozone-​affiliated holdings increased to $​494.​5 billion from last month'​s $​446.​9 billion; they account for 6.​4% of overall taxable money fund holdings. Asia & Pacific related holdings were down at $​321.​4 billion (​4.​2% of the total) from last month'​s $​339.​4 billion. Americas related holdings rose to $​6.​699 trillion from last month'​s $​6.​602 trillion; they now represent 86.​4% of holdings.

The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (​up $​1.​7 billion, or 0.​1%, to $​1.​743 trillion, or 22.​5% of assets); US Government Agency Repurchase Agreements (​down $​26.​6 billion, or -​3.​0%, to $​873.​7 billion, or 11.​3% of total holdings), and Other Repurchase Agreements (​up $​18.​9 billion, or 15.​5%, to $​140.​7 billion, or 1.​8% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (​up $​0.​5 billion to $​188.​5 billion, or 2.​4% of assets), Asset-​Backed Commercial Paper (​down $​0.​6 billion to $​94.​3 billion, or 1.​2%), and Non-​Financial Company Commercial Paper (​up $​2.​2 billion to $​22.​7 billion, or 0.​3%).

The 20 largest Issuers to taxable money market funds as of Oct. 31, 2025, include: the US Treasury ($​3.​397T, 43.​8%), Fixed Income Clearing Corp ($​1.​103T, 14.​2%), Federal Home Loan Bank ($​684.​2B, 8.​8%), JP Morgan ($​230.​1B, 3.​0%), Federal Farm Credit Bank ($​186.​7B, 2.​4%), Citi ($​183.​4B, 2.​4%), Wells Fargo ($​167.​1B, 2.​2%), BNP Paribas ($​163.​0B, 2.​1%), RBC ($​145.​6B, 1.​9%), Barclays PLC ($​118.​9B, 1.​5%), Bank of America ($​99.​7B, 1.​3%), Sumitomo Mitsui Banking Corp ($​90.​1B, 1.​2%), Federal Home Loan Mortgage Corp ($​79.​0B, 1.​0%), Credit Agricole ($​76.​1B, 1.​0%), Mitsubishi UFJ Financial Group Inc ($​63.​7B, 0.​8%), Goldman Sachs ($​62.​5B, 0.​8%), Societe Generale ($​59.​8B, 0.​8%), Toronto-​Dominion Bank ($​57.​3B, 0.​7%), Canadian Imperial Bank of Commerce ($​53.​3B, 0.​7%) and Bank of Montreal ($​47.​9B, 0.​6%).

In the repo space, the 10 largest Repo counterparties (​dealers) with the amount of repo outstanding and market share (​among the money funds we track) include: Fixed Income Clearing Corp ($​1.​079T, 39.​1%), JP Morgan ($​216.​2B, 7.​8%), Citi ($​176.​1B, 6.​4%), Wells Fargo ($​165.​4B, 6.​0%), BNP Paribas ($​154.​3B, 5.​6%), RBC ($​104.​3B, 3.​8%), Barclays PLC ($​98.​2B, 3.​6%), Sumitomo Mitsui Banking Corp ($​76.​4B, 2.​8%), Bank of America ($​68.​9B, 2.​5%) and Goldman Sachs ($​61.​0B, 2.​2%).

The largest users of the $​31.​4 billion in Fed RRP include: T Rowe Price Govt Reserve Fund ($​6.​1B), Dreyfus Treas Obligations Cash Mgmt ($​3.​0B), Dreyfus Govt Cash Mgmt ($​3.​0B), Columbia Short-​Term Cash Fund ($​2.​9B), Vanguard Federal Money Mkt Fund ($​2.​4B), First American Govt Oblg ($​2.​1B), Vanguard Market Liquidity Fund ($​2.​0B), DWS Govt MM ($​1.​9B), Goldman Sachs FS Treas Sol ($​1.​8B) and Western Asset Inst Govt Reserve ($​1.​8B).

The 10 largest issuers of "​credit" -- CDs, CP and Other securities (​including Time Deposits and Notes) combined -- include: RBC ($​41.​3B, 7.​9%), Toronto-​Dominion Bank ($​35.​4B, 6.​7%), Bank of America ($​30.​8B, 5.​9%), Mitsubishi UFJ Financial Group Inc ($​24.​5B, 4.​7%), Fixed Income Clearing Corp ($​23.​3B, 4.​4%), Barclays PLC ($​20.​7B, 3.​9%), Mizuho Corporate Bank Ltd ($​19.​7B, 3.​8%), Sumitomo Mitsui Trust Bank ($​18.​4B, 3.​5%), Credit Agricole ($​17.​9B, 3.​4%) and ING Bank ($​17.​3B, 3.​3%).

The 10 largest CD issuers include: Bank of America ($​16.​1B, 8.​5%), Mitsubishi UFJ Financial Group Inc ($​14.​8B, 7.​8%), Sumitomo Mitsui Trust Bank ($​14.​5B, 7.​7%), Toronto-​Dominion Bank ($​14.​3B, 7.​6%), Sumitomo Mitsui Banking Corp ($​12.​0B, 6.​3%), Credit Agricole ($​11.​4B, 6.​0%), Barclays PLC ($​9.​5B, 5.​0%), Mizuho Corporate Bank Ltd ($​8.​4B, 4.​4%), Mitsubishi UFJ Trust and Banking Corporation ($​8.​1B, 4.​3%) and Canadian Imperial Bank of Commerce ($​7.​8B, 4.​1%).

The 10 largest CP issuers (​we include affiliated ABCP programs) include: RBC ($​32.​7B, 11.​7%), Toronto-​Dominion Bank ($​20.​0B, 7.​1%), JP Morgan ($​13.​8B, 4.​9%), Bank of Montreal ($​11.​4B, 4.​1%), Barclays PLC ($​10.​8B, 3.​8%), Mitsubishi UFJ Financial Group Inc ($​9.​6B, 3.​4%), ING Bank ($​9.​5B, 3.​4%), National Bank of Canada ($​8.​3B, 3.​0%), Bank of America ($​8.​1B, 2.​9%) and Canadian Imperial Bank of Commerce ($​7.​3B, 2.​6%).

The largest increases among Issuers include: the US Treasury (​up $​180.​5B to $​3.​397T), Citi (​up $​36.​9B to $​183.​4B), Barclays PLC (​up $​25.​0B to $​118.​9B), Wells Fargo (​up $​18.​8B to $​167.​1B), Societe Generale (​up $​11.​9B to $​59.​8B), Goldman Sachs (​up $​11.​5B to $​62.​5B), Credit Agricole (​up $​11.​2B to $​76.​1B), Deutsche Bank AG (​up $​10.​3B to $​31.​0B), Federal Home Loan Mortgage Corp (​up $​10.​1B to $​79.​0B) and the Federal Reserve Bank of New York (​up $​9.​3B to $​31.​4B).

The largest decreases among Issuers of money market securities (​including Repo) in October were shown by: RBC (​down $​79.​5B to $​145.​6B), JP Morgan (​down $​47.​2B to $​230.​1B), Federal Home Loan Bank (​down $​18.​5B to $​684.​2B), Fixed Income Clearing Corp (​down $​14.​2B to $​1.​103T), Sumitomo Mitsui Banking Corp (​down $​7.​8B to $​90.​1B), Canadian Imperial Bank of Commerce (​down $​6.​8B to $​53.​3B), Bank of Nova Scotia (​down $​6.​8B to $​23.​1B), Australia & New Zealand Banking Group Ltd (​down $​5.​4B to $​20.​9B), Bank of Montreal (​down $​5.​0B to $​47.​9B) and Bank of America (​down $​4.​2B to $​99.​7B).

The United States remained the largest segment of country-​affiliations; it represents 82.​0% of holdings, or $​6.​359 trillion. France (​4.​5%, $​346.​5B) was in second place, while Canada (​4.​4%, $​340.​0B) was No. 3. Japan (​3.​4%, $​264.​7B) occupied fourth place. The United Kingdom (​2.​4%, $​188.​6B) remained in fifth place. Germany (​0.​7%, $​51.​2B) was in sixth place, followed by Netherlands (​0.​6%, $​49.​2B), Spain (​0.​6%, $​43.​5B), Australia (​0.​5%, $​39.​5B), and Sweden (​0.​3%, $​25.​6B). (​Note: Crane Data attributes Treasury and Government repo to the dealer'​s parent country of origin, though money funds themselves "​look-​through" and consider these U.​S. government securities. All money market securities must be U.​S. dollar-​denominated.)

As of Oct. 31, 2025, Taxable money funds held 44.​2% (​down from 45.​1%) of their assets in securities maturing Overnight, and another 10.​5% maturing in 2-​7 days (​down from 11.​0%). Thus, 54.​7% in total matures in 1-​7 days. Another 10.​2% matures in 8-​30 days, while 11.​9% matures in 31-​60 days. Note that over three-​quarters, or 76.​7% of securities, mature in 60 days or less, the dividing line for use of amortized cost accounting under SEC regulations. The next bucket, 61-​90 days, holds 7.​6% of taxable securities, while 10.​9% matures in 91-​180 days, and just 4.​8% matures beyond 181 days.

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Crane Data'​s latest monthly Money Fund Portfolio Holdings statistics will be sent out Wednesday (​money markets are closed Tuesday for the Veteran'​s Day Holiday), and we'​ll be writing our regular monthly update on the new October data for Thursday'​s News. But we also already uploaded a separate and broader Portfolio Holdings data set based on the SEC'​s Form N-​MFP filings on Monday. (​We continue to merge the two series, and the N-​MFP version is now available via our Portfolio Holdings file listings to Money Fund Wisdom subscribers.) Our new N-​MFP summary, with data as of October 31, includes holdings information from 987 money funds (​up 16 from last month), representing assets of $​7.​917 trillion (​up from $​7.​766 trillion a month ago). Prime MMFs rose to $​1.​211 trillion (​up from $​1.​206 trillion), or 15.​3% of the total. We review the new N-​MFP data and we also look at our revised MMF expense data, which shows charged expenses were mostly flat and money fund revenues rose to $​20.​8 billion (​annualized) in October. (Note: For those new to the money market fund space or in need of a refresher, please join us for our "basic training" event, Money Fund University, which is Dec. 18-​19 in Pittsburgh.)

Our latest Form N-​MFP Summary for All Funds (​taxable and tax-​exempt) shows Treasuries and Repurchase Agreements (​Repo) remain the largest types of portfolio holdings in money market funds. Treasury holdings in money market funds now total $​3.​404 trillion (​up from $​3.​230 trillion), or 43.​0% of all assets, while Repo holdings fell to $​2.​763 trillion (​down from $​2.​771 trillion), or 34.​9% of all holdings. Government Agency securities total $​992.​8 billion (​down from $​997.​5 billion), or 12.​5%. Holdings of Treasuries, Government agencies and Repo (​almost all of which is backed by Treasuries and agencies) combined total $​7.​160 trillion, or a massive 90.​4% of all holdings.

The Other category (​primarily Time Deposits) totals $​110.​2 billion (​down from $​125.​7 billion), or 1.​4%, and Commercial Paper (​CP) totals $​317.​0 billion (​up from $​313.​2 billion), or 4.​0% of all holdings. Certificates of Deposit (​CDs) total $​187.​7 billion (​down from $​189.​1 billion), 2.​4%, and VRDNs account for $​142.​3 billion (​up from $​139.​7 billion), or 1.​8% of money fund securities.

Broken out into the SEC'​s more detailed categories, the CP totals were comprised of: $​190.​1 billion, or 2.​4%, in Financial Company Commercial Paper; $​94.​2 billion, or 1.​2%, in Asset Backed Commercial Paper; and $​32.​7 billion, or 0.​4%, in Non-​Financial Company Commercial Paper. The Repo totals were made up of: U.​S. Treasury Repo ($​1.​738 trillion, or 22.​0%), U.​S. Govt Agency Repo ($​879.​0 billion, or 11.​1%) and Other Repo ($​146.​1 billion, or 1.​8%).

The N-​MFP Holdings summary for the Prime Money Market Funds shows: CP holdings of $​274.​8 billion (​up from $​271.​4 billion), or 22.​7%; Repo holdings of $​577.​6 billion (​up from $​576.​0 billion), or 47.​7%; Treasury holdings of $​105.​5 billion (​up from $​95.​4 billion), or 8.​7%; CD holdings of $​162.​6 billion (​down from $​163.​3 billion), or 13.​4%; Other (​primarily Time Deposits) holdings of $​72.​8 billion (​down from $​83.​4 billion), or 6.​0%; Government Agency holdings of $​6.​4 billion (​up from $​6.​1 billion), or 0.​5%; and VRDN holdings of $​11.​1 billion (​up from $​10.​8 billion), or 0.​9%.

The SEC'​s more detailed categories show CP in Prime MMFs made up of: $​171.​2 billion (​up from $​168.​6 billion), or 14.​1%, in Financial Company Commercial Paper; $​82.​6 billion (​down from $​83.​3 billion), or 6.​8%, in Asset Backed Commercial Paper; and $​21.​0 billion (​up from $​19.​5 billion), or 1.​7%, in Non-​Financial Company Commercial Paper. The Repo totals include: U.​S. Treasury Repo ($​270.​3 billion, or 22.​3%), U.​S. Govt Agency Repo ($​180.​4 billion, or 14.​9%), and Other Repo ($​126.​8 billion, or 10.​5%).

In related news, money fund charged expense ratios (​Exp%) were mostly flat in October. Our Crane 100 Money Fund Index and Crane Money Fund Average were 0.​26% and 0.​37%, respectively, as of October 31, 2025. Crane Data revises its monthly expense data and gross yield information after the SEC updates its latest Form N-​MFP data the morning of the 6th business day of the new month. (​They posted this info Monday morning, so we revised our monthly MFI XLS spreadsheet and historical craneindexes.​xlsx averages file to reflect the latest expenses, gross yields, portfolio composition and maturity breakout.) Visit our "Content" page for the latest files.

Our Crane 100 Money Fund Index, a simple average of the 100 largest taxable money funds, shows an average charged expense ratio of 0.​26% <​b:>`​_down 1 bp from last month'​s level (​also 18 bps higher than 12/​31/​21'​s 0.​08%). The `​Crane Money Fund Average, a simple average of all taxable MMFs, showed a charged expense ratio of 0.​37% as of October 31, 2025, unchanged from the month prior and slightly below the 0.​40% at year-​end 2019.

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Crane Data'​s latest monthly Money Fund Market Share rankings show assets sharply higher among the largest U.​S. money fund complexes in October after also jumping in September. Assets have increased in 15 of the past 16 months (​only April 2025 saw declines). Money market fund assets rose by $​141.​7 billion, or 1.​8%, last month to a record $​7.​854 trillion. Total MMF assets have increased by $​381.​3 billion, or 5.​1%, over the past 3 months, and they'​ve increased by $​986.​0 billion, or 14.​4%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by Goldman Sachs, BNY Dreyfus, BlackRock, JPMorgan and Invesco, which grew assets by $​54.​8 billion, $​14.​8B, $​14.​5B, $​12.​7B and $​10.​9B, respectively. Declines in October were seen by SSIM, UBS, Federated Hermes, American Funds and Northern, which decreased by $​7.​7 billion, $​1.​9B, $​1.​6B, $​1.​0B and $​1.​0B, respectively. Our domestic U.​S. "Family" rankings are available in our MFI XLS product, our global rankings are available in our MFI International product. The combined "Family & Global Rankings" are available to Money Fund Wisdom subscribers. We review the latest market share totals, and look at money fund yields, which were lower in October.

Over the past year through Oct. 31, 2025, Fidelity (​up $​208.​0B, or 14.​7%), JPMorgan (​up $​135.​4B, or 19.​2%), Vanguard (​up $​102.​2B, or 16.​6%), BlackRock (​up $​101.​3B, or 17.​5%) and Schwab (​up $​100.​0B, or 17.​4%) were the largest gainers. Fidelity, Goldman Sachs, JPMorgan, BNY Dreyfus and BlackRock had the largest asset increases over the past 3 months, rising by $​62.​1B, $​61.​6B, $​50.​3B, $​36.​0B and $​29.​8B, respectively. The largest declines over 12 months was seen by: SSIM (​down $​5.​1B), DWS (​down $​2.​8B) and Columbia (​down $​1.​8B). The largest declines over 3 months included: American Funds (​down $​6.​4B) and DWS (​down $​2.​4B).

Our latest domestic U.​S. Money Fund Family Rankings show that Fidelity Investments remains the largest money fund manager with $​1.​623 trillion, or 20.​7% of all assets. Fidelity was up $​2.​4B in October, up $​62.​1B over 3 mos., and up $​208.​0B over 12 months. JPMorgan ranked second with $​840.​5 billion, or 10.​7% market share (​up $​12.​7B, up $​50.​3B and up $​135.​4B for the past 1-​month, 3-​mos. and 12-​mos., respectively). Vanguard ranked in third place with $​718.​6 billion, or 9.​1% of assets (​up $​7.​3B, up $​28.​3B and up $​102.​2B). BlackRock ranked fourth with $​680.​1 billion, or 8.​7% market share (​up $​14.​5B, up $​29.​8B and up $​101.​3B), while Schwab was the fifth largest MMF manager with $​675.​2 billion, or 8.​6% of assets (​up $​8.​6B, up $​17.​1B and up $​100.​0B for the past 1-​month, 3-​mos. and 12-​mos.).

Federated Hermes was in sixth place with $​504.​1 billion, or 6.​4% (​down $​1.​6B, up $​9.​1B and up $​44.​9B), while Goldman Sachs was in seventh place with $​479.​2 billion, or 6.​1% of assets (​up $​54.​8B, up $​61.​6B and up $​49.​1B). BNY Dreyfus ($​340.​5B, or 4.​3%) was in eighth place (​up $​14.​8B, up $​36.​0B and up $​52.​4B), followed by Morgan Stanley ($​287.​5B, or 3.​7%; up $​9.​6B, up $​5.​5B and up $​29.​1B). SSIM was in 10th place ($​256.​4B, or 3.​3%; down $​7.​7B, up $​20.​1B and down $​5.​1B).

The 11th through 20th-​largest U.​S. money fund managers (​in order) include: Allspring ($​234.​8B, or 3.​0%), Northern ($​188.​3B, or 2.​4%), First American ($​183.​4B, or 2.​3%), Invesco ($​166.​9B, or 2.​1%), American Funds ($​158.​8B, or 2.​0%), UBS ($​118.​4B, or 1.​5%), T Rowe Price ($​50.​4B, or 0.​6%), HSBC ($​49.​0B, or 0.​6%), Western ($​41.​3B, or 0.​5%) and DWS ($​38.​3B, or 0.​5%). Crane Data currently tracks 60 U.​S. MMF managers, unchanged from last month.

When European and "​offshore" money fund assets -- those domiciled in places like Ireland, Luxembourg and the Cayman Islands -- are included, the top 10 managers are the same as the domestic list, except: BlackRock moves up to the No. 3 spot and Vanguard moves down to the No. 4 spot. Goldman Sachs moves up to the No. 6 spot, while Federated Hermes moves down to the No. 7 spot. Global Money Fund Manager Rankings include the combined market share assets of our MFI XLS (​domestic U.​S.) and our MFI International ("​offshore") products.

The largest Global money market fund families include: Fidelity ($​1.​645 trillion), JP Morgan ($​1.​135 trillion), BlackRock ($​1.​034 trillion), Vanguard ($​718.​6B) and Schwab ($​675.​2B). Goldman Sachs ($​646.​8B) was in sixth, Federated Hermes ($​517.​3B) was seventh, followed by Dreyfus/​BNY ($​403.​7B), Morgan Stanley ($​391.​7B) and SSIM ($​307.​9B), which round out the top 10. These totals include "​offshore" U.​S. Dollar money funds, as well as Euro and Pound Sterling (​GBP) funds converted into U.​S. dollar totals.

The November issue of our Money Fund Intelligence and MFI XLS, with data as of 10/​31/​25, shows that yields were down in October across all the Crane Money Fund Indexes. The Crane Money Fund Average, which includes all taxable funds covered by Crane Data (​currently 721), was 3.​79% (​down 4 bps) for the 7-​Day Yield (​annualized, net) Average, the 30-​Day Yield was down 9 bps to 3.​81%. The MFA'​s Gross 7-​Day Yield was at 4.​16% (​down 4 bps), and the Gross 30-​Day Yield was down 9 bps at 4.​18%. (Gross yields will be revised once we download the SEC'​s Form N-​MFP data for 10/​31/​25 on Monday.)

Our Crane 100 Money Fund Index shows an average 7-​Day (​Net) Yield of 3.​89% (​down 5 bps) and an average 30-​Day Yield at 3.​92% (​down 11 bps). The Crane 100 shows a Gross 7-​Day Yield of 4.​16% (​down 5 bps), and a Gross 30-​Day Yield of 4.​18% (​down 11 bps). Our Prime Institutional MF Index (​7-​day) yielded 4.​03% (​down 2 bps) as of October 31. The Crane Govt Inst Index was at 3.​92% (​down 2 bps) and the Treasury Inst Index was at 3.​82% (​down 8 bps). Thus, the spread between Prime funds and Treasury funds is 21 basis points, and the spread between Prime funds and Govt funds is 11 basis points. The Crane Prime Retail Index yielded 3.​80% (​down 1 bp), while the Govt Retail Index was 3.​63% (​down 4 bps), the Treasury Retail Index was 3.​58% (​down 8 bps from the month prior). The Crane Tax Exempt MF Index yielded 2.​66% (​up 7 bps) at the end of October.

Gross 7-​Day Yields for these indexes to end October were: Prime Inst 4.​26% (​down 2 bps), Govt Inst 4.​17% (​down 2 bps), Treasury Inst 4.​10% (​down 8 bps), Prime Retail 4.​29% (​down 1 bp), Govt Retail 4.​16% (​down 4 bps) and Treasury Retail 4.​10% (​down 8 bps). The Crane Tax Exempt Index rose to 3.​06% (​up 7 bps). The Crane 100 MF Index returned on average 0.​33% over 1-​month, 1.​02% over 3-​months, 3.​40% YTD, 4.​24% over the past 1-​year, 4.​67% over 3-​years annualized), 2.​95% over 5-​years, and 1.​96% over 10-​years.

The total number of funds, including taxable and tax-​exempt, was up 1 in October at 833. There are currently 721 taxable funds, up 1 from the previous month, and 112 tax-​exempt money funds (​unchanged from last month). (Contact us if you'​d like to see our latest MFI XLS, Crane Indexes or Market Share report.)

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The November issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Friday morning, features the articles: "State Street Joins Money Market ETF Party; Barron'​s," which discusses a filing for the latest Prime Money Market ETF; "BNY on Money Market Evolution; Schwab, NTRS Q3'​25 Earnings," which reviews the latest money fund and digital asset commentary on earnings calls; and "BlackRock Breaks $​1 Trillion; Stablecoin Reserve," which highlights BlackRock'​s AUM milestone and new '​BSTBL' Fund. We also sent out our MFI XLS spreadsheet Friday a.​m., and we'​ve updated our Money Fund Wisdom database with 10/​31/​25 data. Our November Money Fund Portfolio Holdings are scheduled to ship on Wednesday, Nov. 12 (​a day late due to the Veterans Day Holiday), and our November Bond Fund Intelligence is scheduled to go out on Monday, Nov. 17.

MFI'​s "State Street ETF" story says, "State Street Investment Management filed to launch State Street Prime Money Market ETF, the 7th Money Market ETF offering and just the second '​Prime' Money Market ETF. The Form N1-​A Registration Statement states, 'The investment objective of the State Street Prime Money Market ETF is to seek to maximize current income, to the extent consistent with the preservation of capital and liquidity.' The expense ratio for the fund has not been disclosed yet."

The story continues, "​It explains, 'The Fund'​s Board of Trustees has determined that the Fund will qualify as a '​money market fund' pursuant to Rule 2a-​7 under the Investment Company Act of 1940, as amended ('Rule 2a-​7'); therefore, the Fund invests in accordance with regulatory requirements applicable to money market funds, which require ... the Fund to invest only in short-​term, high quality debt obligations..., to maintain a maximum dollar-​weighted average maturity and dollar-​weighted average life of sixty (​60) days or less and 120 days or less, respectively, and to meet requirements as to portfolio diversification and liquidity.'"

We write in our "BNY on Money Market Evolution" profile, "BNY released its third quarter earnings late last month, and the giant custodial bank discussed money markets, stablecoins and tokenized money markets on its earnings call. President & CEO Robin Vince tells us, 'Our early commitment to the digital asset space, paired with the principles of safety, scalability and innovation that have defined BNY for centuries, now positions us to support the growing institutional adoption of digital asset products. In just one example from this past quarter, OpenEden, a leading platform for the tokenization of real-​world assets, headquartered in Singapore, appointed BNY as investment manager and primary custodian for the underlying assets of its flagship Tokenized U.​S. Treasury Bills Fund.'"

It adds, "​He explains, As global capital markets move toward an `​always-​on operating model, blockchain technology and digital asset adoption are becoming important enablers. In a meaningful step toward enhancing the utility of money market fund shares, we announced a collaborative initiative with Goldman Sachs to maintain on blockchain technology, a mirror record of customers’ ownership of select money market funds, live and available through our LiquidityDirect platform. This includes a new token-​enabled share class of our ... Dreyfus Treasury Securities Cash Management Fund. We are encouraged by developments in the U.​S. regulatory landscape that will further enable tokenized products and allow us to support clients as they consider moving to a more '​on chain' financial world.'"

Our "BlackRock $​1 Trillion" article says, "​A press release titled, 'BlackRock Introduces ’​40 Act 2a7 Money Market Fund in GENIUS-​aligned Form,' is subtitled, 'As BlackRock'​s cash management business surpasses $​1 trillion in assets under management, the firm introduces a GENIUS Act-​aligned '​40 Act 2a-​7 money market fund to meet growing demand in the stablecoin market.'"

The article continues, "​It tells us, 'BlackRock announced a strategic update to one of its money market funds, reflecting a refined investment approach designed to enhance liquidity, align with emerging regulatory frameworks, and support the evolving needs of clients.' (​Note: As of Sept. 30, Crane Data shows BlackRock with $​665.​6 billion in U.​S. money funds and $​342.​4 billion in European or ‘​offshore’ money funds, for a total of $​1.​008 trillion.)"

MFI also includes the News brief, "Fed Cuts Rates Again to 3.​75-​4.​0%." It says, "The Federal Reserve Board again reduced short-​term rates, cutting 1/​4 point on 10/​29. Our Crane 100 Money Fund Index has declined to 3.​84% (​on 11/​6) from 3.​92 on 10/​31. Yields should drift lower in coming days as money funds digest the latest rate cut."

Another News brief, "Assets Break $​7.​9/$​7.​5 Trillion," comments, "Crane Data'​s totals show assets jumping $​141.​5 billion in October to a record $​7.​860 trillion. They also just broke above the $​7.​9 trillion level in the first week of November (jumping $​65.​0 billion to $​7.​914 trillion as of 11/​5). Meanwhile ICI'​s latest weekly shows money fund assets increasing by $​116.​4 billion to a new record high of $​7.​535 trillion. MMF assets are up by $​945 billion, or 14.​3%, over the past 52 weeks (​​through 11/​5/​25), with Institutional MMFs up $​587 billion, or 14.​9% and Retail MMFs up $​358 billion, or 13.​5%."

A third News brief, "Federated'​s Donahue Talks Money Markets, Digital Initiatives," says: "Federated Hermes CEO Chris Donahue comments on their recent earnings call, 'In the declining rate environment of the third quarter, investors with interest in capital preservation and liquidity continued to rely on our money market offerings. They also turned to our microshort and ultrashort funds, which are a step further out the yield curve.... We'​re also developing money market funds and share classes available in tokenized form and working with parties on digital asset infrastructure. These efforts include a planned GENIUS Act compliant money market fund designed to serve as collateral for stablecoins.'"

A sidebar, "NYT: Still Buying MMFs," says, "​The New York Times asks in an article, 'Interest Rates Are Falling. Why Are People Still Buying Money Market Funds?' They write, 'Money market funds seem to be defying gravity. They are paying less in interest to investors, but becoming more popular. Given a choice, people usually want more for their money, not less. Yet since the Federal Reserve began pushing short-​term interest rates down more than a year ago, investors have been funneling hundreds of billions of additional dollars into these funds.'"

Our November MFI XLS, with October 31 data, shows total assets rose $​141.​5 billion to a record high $​7.​860 trillion, after increasing $​100.​4 billion in September, $​129.​9 billion in August, $​69.​0 billion in July, $​10.​1 billion in June and jumping $​90.​3 billion in May. MMFs decreased $​26.​6 billion in April and $​4.​6 billion in March. Assets increased $​90.​4 billion in February, $​47.​9 billion in January. Assets jumped $​113.​0 billion in December and $​196.​1 billion last November.

Our broad Crane Money Fund Average 7-​Day Yield was down 4 bps at 3.​79%, and our Crane 100 Money Fund Index (​the 100 largest taxable funds) was down 5 bps at 3.​89% in October. On a Gross Yield Basis (​7-​Day) (​before expenses are taken out), the Crane MFA and the Crane 100 averaged 4.​16% and 4.​16%. Charged Expenses averaged 0.​37% and 0.​27% for the Crane MFA and the Crane 100. (​We'​ll revise expenses once we upload the SEC'​s Form N-​MFP data for 10/​31/​25 on Monday, 11/​10.) The average WAM (​weighted average maturity) for the Crane MFA was 40 days (​down 1 day) and the Crane 100 WAM was down 1 day from the previous month at 41 days. (​See our Crane Index or craneindexes.​xlsx history file for more on our averages.)

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Following the latest Fed cut last week, Investment News asks, "What to do with cash now that Fed has officially cut rates?" They explain, "​The verdict came in as expected Wednesday. The Federal Reserve lowered the federal funds rate by 25 basis points to a target range of 3.​75% to 4.​00%.... Fed Chair Jerome Powell responded [​to a question]: 'If you'​re driving in the fog, you slow down.' This comment added some intrigue to the FOMC'​s next and final decision scheduled for 2025, which will be made on December 9-​10.... As the Fed continues to cut short-​term interest rates, the high yields on cash and money market funds should grind lower. And for those investors allocating to a cash bucket to fund near-​term liabilities, Brian Storey, head of multi-​asset strategies at Brinker Capital Investments, suggests grabbing additional yield if possible while still focusing on the safety of the principal."

The article continues, "Jeff Corey, managing partner at Corey Wealth Partners, says it may make sense to begin extending bond maturities gradually, locking in today'​s yields before they decline further. '​This isn'​t an all-​or-​nothing move. We are taking a measured approach that keeps portfolios balanced while capturing the potential upside from lower rates in many situations,' Corey told Investment News, adding that investors may also benefit from price appreciation as they shift into bonds."

The piece says, "Meanwhile, Brent Coggins, chief investment officer at Triad Wealth Partners, believes the decision to tinker with their cash allocation very much depends on the client'​s primary objectives. 'The risk I am most leery of is duration. Given the current picture around growth, deficits and inflation, I think the long end of the curve could steepen. Chasing a little bit of incremental yield out there is just not worth it in my view,' Coggins said."

It asks, "But does it have to be cash?" Investment News tells us, "Short-​duration bond funds, taxable or municipal based on the client'​s tax bracket, CD or treasury ladders and premium money market funds are all great alternatives to cash, according to Corey. In his view, these strategies allow investors to stay defensive while earning more income than cash alone. For medium-​term alternatives, however, he is remaining cautious with credit risk and extending duration in some portfolios to benefit from the declining rate environment. Nevertheless, he recommends holding some cash even as rates fall."

He says, "Cash remains appropriate for short-​term spending or large upcoming purchases, staying flexible for new investment opportunities, and maintaining an emergency reserve for changes in personal cash flow situations.... Because corporate credit spreads are near their tightest levels in two decades, the risk-​reward for corporate credit today is not as attractive as it is for securitized bonds.... Additionally, he says securitized bonds tend to have a shorter duration profile, which can make them more behaviorally palatable for investors moving out of cash and who may potentially be concerned that an increase in interest rates will lead to losses in their fixed income exposure."

The article adds, "Triad'​s Coggins points out that '​a lot of noise' is being made about the reported $​7 trillion in money market '​dry powder' reportedly waiting to be deployed into risk assets. He, for one, is skeptical of that narrative. '​Equity markets have been on a tear this year behind strong corporate earnings, secular tailwinds like AI, you name it, while other havens like gold are having record years as well. If that money was earmarked for total return, I feel like it would have happened already,' Coggins said. 'My guess is a good portion of that is due to the yield spread between Fed Funds and bank interest."

In other news, Federated Hermes' Debbie Cunningham writes on the recent Fed meeting and tokenized MMFs in "High contrast." She tells readers, "What a difference a meeting can make. The contrast between the Federal Reserve'​s policy-​setting meeting in September and the one that ended Wednesday is striking. In the former, Chair Jerome Powell seemed to have a jump in his step as he announced the Federal Open Market Committee (​FOMC) had lowered rates by a quarter percentage point with only one, very expected, dissent by White House economist turned Governor Stephen Miran for a half-​point cut. Powell had rallied the troops to make a policy decision the traditional way -- based on economic data and not political pressure."

But Cunningham writes, "[​Last] Wednesday, the Fed became a house divided. The decision to take the fed funds target range down another 25 basis points to 3.​75-​4% came with dissents on both sides: Kansas Fed president Jeffrey Schmid'​s call for no change countered a repeat by Miran. In Powell'​s attempt to explain this to the press he appeared anxious and threw considerable doubt on the likelihood of another ease in the December FOMC gathering."

She says, "He waffled between dismissing the lack of government data due to the shutdown -- claiming private data and the Fed'​s own surveys were sufficient -- and suggesting the lack of clarity ('​fog') could slow the Fed down. He seemed to be setting the stage for a humdinger of a meeting in December. The markets have responded with confusion, seen in the drastic drop of expectations for a cut. We will re-​evaluate our own forecast of a quarter-​point reduction, hoping that government data will return soon. About the only thing the FOMC seemed to agree upon was that its quantitative tightening should end on Dec. 1. This was widely expected and is considered a good move by the market."

In a segment titled, "Tokens of gratitude," Cunningham comments, "With the passing of the Guiding and Establishing National Innovation for US Stablecoins (​GENIUS) Act in mid July, the liquidity industry has been awash with discussions about blockchain structures, stablecoins and tokens. For whatever reason, tokenized money market funds jumped to the forefront in October, with a news story or announcement seeming to come every day. For an asset class that could very well pass $​8 trillion, discovering additional avenues, use cases and distribution models is newsworthy."

She adds, "As I have said before, we at Federated Hermes take a thoughtful and cautious approach to the technology. That was certainly the case this summer when we agreed to participate with BNY and Goldman Sachs in their tokenization initiative and last month we made two of our UCITS money market funds available in tokenized form via Archax, a well-​known digital assets operator in the UK. It'​s an exciting time for the liquidity industry as it evolves into the digital asset space, in which we expect ongoing innovation and growth."

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TD Securities published, "The Impact of Stablecoins and Digital Assets in the U.​S." Written by Jan Nevruzi and Gennadiy Goldberg, the piece tells us, "Digital assets are quickly moving from the periphery of financial markets into the mainstream. Cryptocurrencies remain volatile and largely speculative, but other digital assets have found rapid institutionalization and are reshaping the liquidity, settlement and collateral landscape. These assets are increasingly designed to replicate money-​like claims with added features that come with the blockchain rails (​the underlying network that communicates the information about the transactions). The growth in these asset classes has made them an important participant in fixed income markets, most notably in the U.​S. Treasury market."

It says, "The integration of digital assets into traditional markets has important implications for both the demand outlook for fixed income securities and policy design choices by officials. Banks are also exploring their own initiatives in response to the competitive pressures from digital assets that pose a challenge to their traditional payment and depository frameworks."

TD writes, "​Digital assets are an extremely broad category, and new branches appear almost daily. For the purposes of this article, we will focus on Stablecoins, Tokenized Real-​World Assets and Central Bank Digital Currencies -- splitting the last into two broad categories, coins and tokens. The main distinction between the two is that coins (​e.​g., Bitcoin) are native to their own blockchain and function as a payment form within that system, while tokens (​e.​g., stablecoins) are created on top of an existing blockchain, usually via smart contracts."

They explain, "Stablecoins are a type of virtual currency designed to maintain a stable peg against another asset or currency. The largest stablecoins are pegged against the U.​S. Dollar and aim to keep their value at US$​1.​00 (​fiat-​pegged), but other stablecoins are slowly gaining popularity and are backed by commodities (​e.​g., Pax Gold (​PAXG)) or other cryptocurrencies (​e.​g., Wrapped Bitcoin (​WBTC) with Bitcoin (​BTC))."

The piece continues, "​There are several notable themes in stablecoin volumes and assets: Assets invested in stablecoins have also increased: Total stablecoin supply now sits at US$​250 billion versus US$​159 billion in August 2024. The majority of stablecoin supply is allocated between the two largest stablecoins -- Tether (​USDT) and Circle (​USDC). Flows into stablecoins have historically been cyclical and highly correlated with trends in crypto markets. However, the industry is now much more mature, and growing real-​world use cases are likely to create increased resilience in the asset base during volatile periods."

It comments, "Most of the assets that stablecoins control are in fiat-​pegged coins, with two stablecoins controlling the majority share -- Tether (​USDT) and Circle (​USDC). The most common blockchain for stablecoins is the Ethereum network (​ERC-​20 standard), but other networks are also used for lower fees and efficiency purposes."

The article discusses, "Tether (​USDT): Tether is the oldest stablecoin with the largest market cap (​US$​168 billion). Tether publishes quarterly attestations about its reserves, with these attestations moving to a monthly basis once the stablecoin becomes compliant with the GENIUS Act. Tether supports various blockchains, but by far the most commonly used protocols are Ethereum (​ERC-​20) and Tron (​TRC-​20), split roughly equally."

It says, "Circle (​USDC): Circle is the second-​largest stablecoin with US$​70 billion in assets. Combined with Tether, they make up ~​85% of the fiat-​pegged stablecoin industry'​s assets. USDC is the largest onshore stablecoin since USDT is offshore. USDC is mainly operated as an Ethereum token (​ERC-​20 standard), but can be traded on various other chains, with Solana the second-​largest protocol."

Discussing "The Role of Tokenized Treasuries and Money Market Funds," the authors explain, "Tokenized treasuries and money market funds are very similar to stablecoins in that the transactions are recorded on a digital ledger, they have similar minting/​burning mechanics, and they can be traded on secondary markets like crypto exchanges. However, unlike stablecoins, tokenized assets provide the owner with a direct ownership stake in a specific asset (​e.​g., an exact CUSIP), provide an economic benefit (​e.​g., voting rights or yield), and are bound by different securities regulations."

They tell us, "Tokenized assets are not a new legal category of securities but are digital representations of traditional financial instruments. Therefore, the regulatory framework that applies to the underlying security also applies to the token. The growth in assets allocated to stablecoins will have an impact on the Treasury market -- particularly on shorter-​dated securities. If the inflows into digital assets continue at the current breakneck pace, the amount of money that those vehicles have to invest will soon be material even in the context of the Treasury market."

Finally, the piece adds, "This may influence Treasury'​s debt management decisions, leading to a shorter weighted average maturity of issuance. Treasury is already paying close attention to this and has been asking primary dealers to comment on the topic. Dollar-​denominated stablecoins, which at this stage make up nearly the entire fiat-​backed stablecoin universe, are forced to back their tokens 1:​1 with assets. The GENIUS Act imposed stricter guidelines on what those reserves can look like, but the main allocations will likely be to Treasury bills and coupons with less than 3 months of maturity and overnight repo (​a close substitute to bills)."

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State Street Investment Management filed to launch State Street Prime Money Market ETF, the 7th Money Market ETF offering and just the second "​Prime" Money Market ETF. The Form N1-​A Registration Statement states, "The investment objective of the State Street Prime Money Market ETF (​the '​Fund') is to seek to maximize current income, to the extent consistent with the preservation of capital and liquidity.... The Fund follows a disciplined investment process in which SSGA Funds Management, Inc. ('​SSGA FM' ​or the '​Adviser'), the investment adviser to the Fund, bases its decisions on the relative attractiveness of different money market instruments. In the Adviser'​s opinion, the attractiveness of an instrument may vary depending on the general level of interest rates, as well as imbalances of supply and demand in the market. Among other things, the Adviser conducts its own credit analyses of potential investments and portfolio holdings and relies substantially on a dedicated short-​term credit research team." (​The expense ratio for the fund has not been disclosed yet.)

It explains, "The Fund'​s Board of Trustees has determined that the Fund will qualify as a '​money market fund'  pursuant to Rule 2a-​7 under the Investment Company Act of 1940, as amended ('​Rule 2a-​7'); therefore, the Fund invests in accordance with regulatory requirements applicable to money market funds, which require, among other things, the Fund to invest only in short-​term, high quality debt obligations (​generally, securities that have remaining maturities of 397 calendar days or less and that the Fund believes present minimal credit risk), to maintain a maximum dollar-​weighted average maturity and dollar-​weighted average life of sixty (​60) days or less and 120 days or less, respectively, and to meet requirements as to portfolio diversification and liquidity."

The filing continues, "The Fund attempts to meet its investment objective by investing in a broad range of money market instruments. These may include, among other things: U.​S. government securities, including U.​S. Treasury bills, notes and bonds and other securities issued or guaranteed as to principal and/​or interest, as applicable, by the U.​S. government or its agencies or instrumentalities; certificates of deposits and time deposits of U.​S. and foreign banks (​including ECDs, ETDs and YCDs (​as defined below)), commercial paper and other high quality obligations of U.​S. or foreign companies; asset-​backed securities, including asset-​backed commercial paper; mortgage-​related securities, including non-​governmental mortgage-​related securities; and repurchase agreements. These instruments may bear fixed, variable or floating rates of interest or may be zero-​coupon securities."

It says, "Under normal market conditions, the Fund intends to invest more than 25% of its total assets in bank obligations. A substantial portion of the Fund may be invested in securities that are issued or traded pursuant to exemptions from registration under the federal securities laws. European Certificates of Deposit ('​ECDs') are U.​S. dollar-​denominated certificates of deposit issued by a bank outside of the United States. European Time Deposits ('​ETDs') are U.​S. dollar-​denominated deposits in foreign branches of U.​S. banks and foreign banks. Yankee Certificates of Deposit ('​YCDs') are U.​S. dollar-​denominated certificates of deposit issued by U.​S. branches of foreign banks. These instruments have different risks than those associated with the obligations of U.​S. banks operating in the United States."

The filing cautions, "Because the share price and NAV of the Fund will fluctuate, when shares are sold (​or redeemed, in the case of an Authorized Participant), they may be worth more or less than what was originally paid for them. You could lose money by investing in the Fund. The Fund is an actively managed ETF that does not seek to replicate the performance of a specified index. Unlike a traditional money market fund, the Fund operates as an Exchange Traded Fund ('​ETF') and will be traded on a regulated exchange. The net asset value ('​NAV') per share will not seek to maintain a stable value and is expected to fluctuate with changes in the values of the Fund'​s portfolio securities and reflecting changes in NAV based on creations and redemptions with Authorized Participants."

Discussing "Principal Risks," State Street writes, "As with all investments, there are certain risks of investing in the Fund. The Fund Shares will change in value, and you could lose money by investing in the Fund. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Because the share price of the Fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. The Fund may impose a fee upon sale of your shares. The Fund may impose a fee upon the sale of shares by Authorized Participants. The Fund generally must impose a fee when net sales of Fund shares exceed certain levels. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund'​s sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress."

Under Risks, it lists, "Money Market Risk-​Floating NAV," stating, "​The Fund does not maintain a constant net asset value per share. The Fund'​s net asset value is calculated to six decimal places for transactions with Authorized Participants and will vary reflecting the value of the portfolio of investments held by the Fund. The Fund'​s share price will be calculated to less decimal places in connection with transactions on the Exchange. It is possible to lose money by investing in the Fund."

On "Money Market Liquidity Fee Risk," they state, "The Board, or its delegate, must impose a mandatory liquidity fee upon all shares redeemed if the Fund'​s net redemptions on any business day exceed 5% of the Fund'​s net assets, unless the liquidity costs are de minimis. Accordingly, redemptions by Authorized Participants may be subject to a mandatory liquidity fee at certain times, which may impact the Fund'​s price on the Exchange. A potential liquidity fee, even if not imposed, may also impact the Fund'​s share price on the Exchange. Investors trading on the Exchange will not be directly subject to the mandatory liquidity fee."

The filing adds, "Additionally, the Board, or its delegate, has discretion to impose a liquidity fee of up to 2% upon the redemption of shares if the Board or its delegate determines that is in the best interest of the Fund. Accordingly, redemptions by Authorized Participants may be subject to a discretionary liquidity fee when an Authorized Participant redeems shares which may impact the Fund'​s price on the Exchange. A potential liquidity fee, even if not imposed, may also impact the Fund'​s share price on the Exchange. Investors trading on the Exchange will not be directly subject to the discretionary liquidity fee."

Discussing "Fluctuation of Net Asset Value, Share Premiums and Discounts Risk," State Street says, "As with all exchange-​traded funds, Fund Shares may be bought and sold in the secondary market at market prices. Although shares are listed on an exchange, there can be no assurance that an active secondary trading market will develop or continue. In addition, trading of shares in the secondary market may become less liquid or may be halted, for example, due to activation of market-​wide '​circuit breakers.' If trading halts or an unanticipated early closing of the listing exchange occurs, a shareholder may be unable to purchase or sell shares of the fund. The trading prices of Fund Shares in the secondary market may differ from the Fund'​s daily NAV per share and there may be times when the market price of the shares is more than the NAV per share (​premium) or less than the NAV per share (​discount). This risk is heightened in times of market volatility or periods of steep market declines."

On "Risks Related to ECDs, ETDs and YCDs," they tell us, "Banks issuing ECDs, ETDs and YCDs are not necessarily subject to the same regulatory requirements that apply to domestic banks, such as loan limitations, examinations and reserve, accounting, auditing, recordkeeping and public reporting requirements. Obligations of foreign issuers also involve risks such as future unfavorable political and economic developments, withholding or other tax, seizures of foreign deposits, currency controls, interest limitations, and other governmental restrictions that might affect repayment of principal or payment of interest, or the ability to honor a credit commitment."

The filing explains, "SSGA FM serves as the investment adviser to the Fund. The Fund will issue (​or redeem) Fund Shares to certain institutional investors (​typically market makers or other broker-​dealers) only in large blocks of Fund Shares known as '​Creation Units.'  Creation Unit transactions are conducted in exchange for the deposit or delivery of a designated portfolio of in-​kind securities and/​or cash. Creation Unit transactions may be conducted in exchange for cash only, which may cause the Fund to recognize capital gains and to pay out higher annual capital gain distributions to shareholders than if such transactions had been conducted in-​kind."

Finally, the filing says, "Individual Fund Shares may only be purchased and sold on the Cboe BZX Exchange, Inc. (​the '​Exchange'), other national securities exchanges, electronic crossing networks and other alternative trading systems through your broker-​dealer at market prices. Because Fund Shares trade at market prices rather than at net asset value ('​NAV'), Fund Shares may trade at a price greater than NAV (​premium) or less than NAV (​discount). When buying or selling Fund Shares in the secondary market, you may incur costs attributable to the difference between the highest price a buyer is willing to pay to purchase Fund Shares (​bid) and the lowest price a seller is willing to accept for Fund Shares (​ask) (​the '​bid-​ask spread'). Recent information regarding the Fund'​s NAV, market price, premiums and discounts, and bid-​ask spreads is available at `​www.​statestreet.​com/​im."

For more on Money Market ETFs, see these Crane Data News stories: "Barron'​s on Money-​Market ETFs; JPMorgan Says MF Assets Headed Higher" (​10/​20/​25), "JPMorgan Files for Money Market ETF" (​7/​10/​25), "BlackRock Money Market ETFs Go Live; Ondo Finance on Tokenized MMFs" (​2/​6/​25), "VettaFi Discusses Money Market ETFs" (​12/​11/​24), "Dec. MFI: Assets Break $​7.​0 Tril; Top 10 of 2024; BlackRock MM ETFs" (​12/​6/​24), "BlackRock Debuts First Euro MM ETF" (​12/​5/​24), "FT on BlackRock Money Market ETFs" (​11/​18/​24), "November BFI: Bond Funds Hit by Election; ETF Trends MM Substitutes" (​11/​15/​24), "BlackRock Files for Money Market ETFs" (​11/​12/​24) and "Texas Capital Launches Govt MM ETF" (​9/​26/​24).

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Federated Hermes reported Q3'​25 earnings Thursday night and hosted its Q3'​25 earnings call on Friday morning. In the press release, President & CEO J. Christopher Donahue, says, "In the declining rate environment of the third quarter, investors with interest in capital preservation and liquidity continued to rely on our money market offerings. They also turned to our microshort and ultrashort funds, which are a step further out the yield curve and pursue higher yields than money market strategies."

The release tells us, "Fixed-​income assets were a record $​101.​8 billion at Sept. 30, 2025, up $​1.​6 billion or 2% from $​100.​2 billion at Sept. 30, 2024 and up $​3.​1 billion or 3% from $​98.​7 billion at June 30, 2025. Top-​selling fixed-​income funds during Q3 2025 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Sustainable Global Investment Grade Credit Fund, Federated Hermes Municipal Ultrashort Fund, Federated Hermes Government Ultrashort Fund and Federated Hermes Short Term Income Fund."

It explains, "Money market assets were a record $​652.​8 billion at Sept. 30, 2025, up $​59.​8 billion or 10% from $​593.​0 billion at Sept. 30, 2024 and up $​18.​4 billion or 3% from $​634.​4 billion at June 30, 2025. Money market fund assets were a record $​492.​7 billion at Sept. 30, 2025, up $​52.​3 billion or 12% from $​440.​4 billion at Sept. 30, 2024 and up $​24.​7 billion or 5% from $​468.​0 billion at June 30, 2025."

Federated states, "Revenue increased $​61.​0 million or 15% primarily due to an increase in revenue resulting from higher average money market and equity assets. During Q3 2025, Federated Hermes derived 52% of its revenue from money market assets, 46% from long-​term assets (​29% from equity, 11% from fixed-​income, and 6% from alternative/​private markets and multi-​asset) and 2% from sources other than managed assets. Operating expenses increased $​43.​3 million or 15% primarily due to a $​17.​7 million increase in distribution expenses resulting primarily from higher average managed money market fund assets, an increase in Other expense of $​13.​7 million primarily due to fluctuations in foreign currency exchange rates and a $​8.​5 million increase in Compensation and related expense primarily related to higher incentive compensation."

On the earnings call, Donahue comments, "Now turning to fixed income, assets increased by $​3.​1 billion from the prior quarter to reach a record high of $​101.​8 billion at the end of Q3. Fixed income total net sales improved by $​4.​1 billion, as we had $​1.​7 billion of net sales in the third quarter compared to net redemptions of $​2.​4 billion in the second quarter. Q3 net sales included about $​1.​4 billion from two large public entities that have regular sizable inflows and outflows. We had 24 fixed income funds with net sales in the third quarter, led by the three ultrashort funds with $​579 billion combined, and the sustainable global investment-​grade usage fund about $​240 million."

He says, "This was occasioned by positives in Ultrashorts and Total Return Bond Fund that were overcome by negatives in high-​yield bonds.... Fixed income is expected to have net redemptions of about $​650 million, with wins of about $​380 million in high yield and short duration offset by a single $​1 billion high-​yield redemption."

Donahue tells the call, "Moving on to money markets, we reached another record high at the end of Q3 for total money market assets, which increased by $​18 billion to reach $​653 billion. Money market fund assets increased by $​24.​7 billion or 5% in Q3 to reach a record high of $​492.​7 billion. Money market separate accounts decreased by $​6.​3 billion in Q3, reflecting seasonal patterns."

He continues, "Market conditions remained favorable for cash as an asset class. In addition to the appeal of relative safety in periods of volatility, money market strategies present opportunities to earn attractive yields compared to alternatives such as bank deposits and direct investments in T-​bills and commercial paper."

Donahue then comments, "We'​re also developing money market funds and share classes available in tokenized form and working with parties on digital asset infrastructure. These efforts include a planned GENIUS Act compliant money market fund designed to serve as collateral for stablecoins. Last week, we announced that we have made two of our UCITS money market funds, our Sterling Prime and U.​S. Dollar Prime, available in tokenized form through Archax. Archax is a well-​known digital assets operator in the U.​K., having launched in 2018 and become the first FCA-​regulated digital Securities Exchange broker-​dealer and custodian."

He says, "This represents a Federated Hermes initial non-​U.​S. digital asset initiative. The Archax relationship complements our digital efforts, where we are the sub-​adviser for the superstate short-​duration U.​S. government securities fund, a private tokenized fund with about $​735 million in assets. We will also participate in the launch of a collaborative initiative between BNY and Goldman that will use blockchain technology to maintain a record of their customers' ownership of select money market funds, a significant step towards enhancing the utility and transferability of existing money market fund shares."

Donahue adds, "We are exploring numerous other additional digital asset opportunities. We are committed to the digital space where we expect ongoing innovation and growth. Our estimate of money market mutual fund market share, including sub-​advised funds remained at about 7.​11% at the end of the third quarter. Now looking at recent asset totals as of a few days ago, managed assets were approximately $​865 billion, including $​645 billion in money markets, $​96 billion in equities, $​102 billion in fixed income, $​19 billion in alternatives, private markets, $​3 billion in multi-​asset. Money market mutual fund assets stood at $​486 billion."

Finally, during the Q&​A session, one analyst asks about expenses. CFO Tom Donahue responds, "Obviously, the digital things and money market stuff and other expansions, I don'​t see outsized expenses coming in here. And if they do, we would fully expect them to come with revenue shortly thereafter."

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