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The Investment Company Institute released its latest weekly "Money Market Fund Assets" report Thursday, which shows money fund assets rising $​3.​8 billion to a record $​7.​190 trillion. MMFs rose $​33.​3 billion the week prior and $​76.​2 billion two weeks ago. MMF assets are up by $​948 billion, or 15.​2%, over the past 52 weeks (​through 8/​20/​25), with Institutional MMFs up $​531 billion, or 14.​3% and Retail MMFs up $​417 billion, or 16.​4%. Year-​to-​date, MMF assets are up by $​339 billion, or 5.​0%, with Institutional MMFs up $​126 billion, or 3.​1% and Retail MMFs up $​214 billion, or 7.​8%. (Note: Register soon for our European Money Fund Symposium, which takes place in just one month, Sept. 22-​23 in Dublin, Ireland!)

ICI'​s weekly release says, "Total money market fund assets increased by $​3.​75 billion to $​7.​19 trillion for the week ended Wednesday, August 20, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $​984 million and prime funds increased by $​3.​87 billion. Tax-​exempt money market funds increased by $​866 million." ICI'​s stats show Institutional MMFs decreasing $​4.​4 billion and Retail MMFs increasing $​8.​1 billion in the latest week. Total Government MMF assets, including Treasury funds, were $​5.​857 trillion (​81.​5% of all money funds), while Total Prime MMFs were $​1.​196 trillion (​16.​6%). Tax Exempt MMFs totaled $​136.​7 billion (​1.​9%).

It explains, "Assets of retail money market funds increased by $​8.​09 billion to $​2.​95 trillion.. Among retail funds, government money market fund assets increased by $​5.​40 billion to $​1.​86 trillion, prime money market fund assets increased by $​2.​05 billion to $​969.​78 billion, and tax-​exempt fund assets increased by $​649 million to $​123.​76 billion." Retail assets account for 41.​0% 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 $​4.​34 billion to $​4.​24 trillion. Among institutional funds, government money market fund assets decreased by $​6.​38 billion to $​4.​00 trillion, prime money market fund assets increased by $​1.​82 billion to $​225.​90 billion, and tax-​exempt fund assets increased by $​217 million to $​12.​92 billion." Institutional assets accounted for 59.​0% of all MMF assets, with Government Institutional assets making up 94.​4% of all institutional MMF totals.

According to Crane Data'​s separate Money Fund Intelligence Daily series, money fund assets have increased by $​82.​5 billion in August (​through 8/​20/​25) to $​7.​553 trillion. Assets broke above $​7.​5 trillion on August 4, hit a new record high of $​7.​575 trillion on August 12, but have since inched lower. Assets increased by $​63.​7 billion in July, $​6.​7 billion in June and jumped by $​100.​9 billion in May. They 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 trillion in November, $​97.​5 billion in October, $​149.​8 billion in September and $​109.​7 billion last August. Note that ICI'​s asset totals don'​t include a number of funds tracked by the SEC and Crane Data, so they'​re almost $​400 billion lower than Crane'​s asset series.

In other news, a press release titled, "State Street Becomes First Third-​Party Custodian to Launch on J.​P. Morgan'​s Digital Debt Service, Bringing Blockchain-​Based Debt Securities Custody to Institutional Clients," tells us, "State Street Corporation (​STT) announced ... that it has become the first third-​party custodian to launch on J.​P. Morgan'​s Digital Debt Service, marking a significant milestone in the institutional adoption of blockchain-​based debt securities. This strategic collaboration enables State Street to offer custody services for debt securities that are issued, settled and serviced using blockchain technology, delivering a seamless and efficient client experience. The service is currently available only in the U.​S."

It explains, "This milestone was marked by the successful purchase of a $​100M commercial paper transaction with State Street Investment Management, the asset management business of State Street Corporation. The transaction demonstrates the Digital Debt Service'​s ability to modernize short-​term debt markets by enabling precision-​timed settlement, with T+​0 settlement available as an option. As an onboarded custodian to J.​P. Morgan'​s Digital Debt Service, State Street can now offer clients access to blockchain-​based debt instruments while maintaining the security and regulatory compliance standards expected from traditional custody services."

State Street says, "The transaction also demonstrates the full integration of State Street'​s capabilities across the investment lifecycle, with State Street Investment Management serving as the front-​office investor and State Street providing middle and back-​office functionality."

Donna Milrod, Chief Product Officer at State Street, comments, "Through our direct participation in J.​P. Morgan'​s Digital Debt Service, we are advancing our ability to deliver a fully integrated front-, middle-, and back-​office solution built on blockchain technology. This launch reflects a meaningful step forward in our digital strategy -- where we manage a digital wallet on-​chain and lay the groundwork for interoperability across blockchain networks. It'​s also a clear demonstration of our 'One State Street' approach, combining institutional-​grade infrastructure with emerging digital capabilities to meet the evolving needs of our clients."

The release adds, "State Street has been at the forefront of institutional digital asset adoption with a goal of providing clients an integrated business and operating model that supports the digital investment lifecycle. The integration with J.​P. Morgan allows State Street to offer clients seamless custody experience that incorporates blockchain-​based debt instruments without altering their established servicing model, including: Precision-​Timed Settlement: Settlement infrastructure enables precision and reliability with reduced counterparty risk; and, Streamlined Lifecycle Management: Smart contracts streamline payments, redemptions, and other corporate actions automatically."

Pia McCusker, global head of Cash Management for State Street Investment Management, states, "This partnership with J.​P. Morgan'​s Digital Debt Service represents a transformative movement for institutional asset management. Our successful investment in the first commercial paper transaction in blockchain format for our Short Term Investment Fund demonstrates the tangible benefits this technology brings to our clients and positions them at the forefront of the digital transformation in fixed income markets."

Finally, Emma Lovett, Credit Lead for the Markets Digital Assets Team at J.​P. Morgan, says, "Digital asset adoption and investment continues to increase across financial markets globally. As first movers in this space, J.​P. Morgan'​s Digital Debt Service application is a significant advancement in the evolution of digital issuances, providing clients with the opportunity to explore the use of blockchain in unlocking ecosystem-​wide efficiencies across capital markets and the lifecycle of bond. State Street'​s participation as a custodian on our application demonstrates another meaningful step forward in the institutional adoption of blockchain-​based debt securities."

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The Journal of Banking & Finance published a paper written by Michel Baes, ESMA'​s Antoine Bouveret and Eric Schaanning titled, "Money Market Funds Vulnerabilities and Systemic Liquidity Crises." The Abstract explains, "​Despite regulatory reforms, Money Market Funds (​MMFs) experienced severe stress in March 2020, following large redemptions and dislocations in short term markets. We provide a model showing the trade-​offs between liquidity and capital preservation services offered by MMFs. We show that in a crisis, MMFs cannot provide liquidity and capital preservation to investors at the same time. As a result, investors have an incentive to run pre-​emptively. We calibrate our model on data from USD MMFs and find that most funds would have been unable to meet redemptions above 30% mid-​March 2020. Unless short-​term funding markets are made resilient in times of stress, MMFs will face similar challenges during future liquidity crises."

The paper'​s "Introduction" states, "Money Market Funds (​MMFs) are used by investors as cash management vehicles. MMFs perform two key functions: they provide on-​demand liquidity, and they seek to preserve capital for investors -- that is, they aim to maintain the value of the original investment and avoid losses. These features make MMFs particularly attractive to institutional investors. However, MMFs vulnerabilities emerge from the liquidity and maturity transformation they perform: they offer daily redemptions to investors while investing in instruments of longer maturity and of varying degrees of liquidity."

It says, "MMF fragilities arise because they do not provide limits on the quantity of liquidity available to investors (​all fund shares can be redeemed), and do not provide a price for liquidity (​the share price is constant or subject to very low variations). These features create incentives for investors to redeem early, especially when anticipating that a fund might become unable to meet redemptions without losses."

The piece continues, "While other open-​ended funds also perform liquidity transformation (​Gold stein et al., 2017), MMFs are more vulnerable because they are used as a primary source of liquidity, and are expected to maintain a stable NAV. In the aftermath of the Global Financial Crisis, regulatory reforms in the US and Europe sought to make MMFs more resilient. The regulatory framework was tightened to reduce credit risk and maturity transformation, and explicit liquidity requirements were introduced. However, the March 2020 episode revealed that these changes did not resolve the core tension between liquidity provision and capital preservation (​FSB (​2020), Anadu et al. (​2022))."

It tells us, "In this article, we study the inherent trade-​off between the liquidity and capital preservation services MMFs offer. We develop a stylized model that shows that MMFs cannot deliver both simultaneously during a crisis. When liquidity in underlying markets dries up, redeeming investors can impose losses on remaining investors, prompting pre-​emptive redemptions. This dynamic creates a run risk similar to that described by Diamond and Dybvig (​1983), but it arises from the interplay between price stability and unrestricted liquidity."

The authors state, "We calibrate the model using data from US Prime MMFs in the lead-​up to the March 2020 '​dash for cash' episode. Our analysis shows that most funds would have been unable to meet redemptions above 30% of their net asset value without violating capital preservation -- consistent with observed stress and the need for central bank intervention. We extend the analysis to European USD MMFs and find comparable vulnerabilities."

They add, "Finally, we apply the framework to assess potential regulatory reforms and their impact on the resilience of MMFs. We explore measures such as the move to a floating net asset value (​NAV), higher liquidity requirements and countercyclical liquidity buffers. We quantify how these reforms affect the trade-​off between liquidity and capital preservation, and discuss their implications for financial stability. Overall, our findings suggest that unless the resilience of short-​term funding markets is improved, MMFs will continue to face destabilizing run risk in future crises."

The paper also explains, "​Our work relates to several strands of the literature. On the theoretical side, classic models of runs (​Diamond and Dybvig, 1983; Chen et al., 2010) highlight the risks of liquidity transformation. Hanson et al. (​2015) compare the fragilities of banks and market-​based intermediaries, showing how fire sales and liquidity needs create negative externalities in shadow banking. Our key contribution to this strand of literature is to model how the interactions between price and liquidity constraints, asset liquidity and investor redemptions determine the resilience of MMFs."

It continues, "On the empirical side, several papers have documented the run on MMFs observed during the Global Financial Crisis of 2007-​2008 and the March 2020 episode. During the former, runs, and sponsor support were widespread (​Pedersen, 2009; McCabe, 2010; Chernenko and Sunderam, 2014). More recent studies show that US Prime MMFs which were more likely to use fees and gates (​due to lower liquid assets) experienced higher outflows in March 2020 than funds with higher liquidity buffers (​Li et al., 2021; Cipriani and La Spada, 2020). European MMFs showed similar patterns, particularly among Low Volatility Net Asset Value (​LVNAV) funds with limited liquid assets (​Dunne and Giuliana, 2021)."

The paper then states, "Finally, our results contribute to the discussion of regulatory reforms and their impact. McCabe et al. (​2013) and Cipriani et al. (​2014) analyze how liquidity fees, gates, and floating NAVs may influence run incentives. Allen and Winters (​2020) and Fricke et al. (​2024) document how regulatory changes reshaped fund flows, shifting assets between fund types and jurisdictions. We contribute to this discussion by providing a quantitative model to assess how specific reforms affect MMF resilience."

The Introduction adds, "The remainder of the paper is organized as follows: Section 2 discusses MMF fragilities, Section 3 outlines a stylized model to illustrate the liquidity/​capital preservation conundrum for MMFs, Section 4 applies the model to data on European and US MMFs, Section 5 discusses regulatory reforms and macroprudential considerations and Section 6 concludes."

The work concludes, "We have shown how MMFs vulnerabilities crystallize during liquidity crises. In times of stress, funds are unable to provide capital preservation and liquidity services to investors. Using data on EU and US MMFs, we calibrate our model and show that during the COVID-​19 crisis, MMFs ability to meet redemptions was very low, at around 30% of NAV. A range of regulatory reforms can be considered, and the most effective relate to those that relax the price deviation and reduce liquidity transformation performed by MMFs. Such reforms can improve the resilience of MMFs. However, unless investors' behavior changes and short-​term funding markets are made more resilient in times of stress, MMFs will continue to face acute challenges during liquidity crises."

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BNY is about to become the third manager of a money market fund dedicated primarily to stablecoin reserves, following a new Form N1-​A registration filing for "BNY Dreyfus Stablecoin Reserves Fund." It tells us, "The fund pursues its investment objective by investing in (​i) U.​S. Treasury bills, notes, or bonds (​collectively, U.​S. Treasury securities), (​ii) overnight repurchase agreements collateralized solely by U.​S. Treasury securities, and (​iii) cash. The fund is a money market fund subject to the maturity, quality, liquidity and diversification requirements of Rule 2a-​7 under the Investment Company Act of 1940, as amended, and seeks to maintain a stable share price of $​1.​00. The U.​S. Treasury securities in which the fund invests have a maturity of 93 days or less." (​Last week, Goldman Sachs filed for its pending Stablecoin Reserves Fund and BlackRock launched Circle Reserves Fund, USDXX, in late 2022. See our Aug. 13 News, "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings;" our August 7 News, "August MFI: BNY Portal Tokenizes; ICD'​s Tory Hazard; Stablecoins in Q2;" and our July 24 News, "BNY'​s LiquidityDirect Portal Announces Plans to Tokenize Money Funds.")

BNY'​s N1-​A explains, "The fund is a '​government money market fund,' as that term is defined in Rule 2a-​7, and as such is required to invest at least 99.​5% of its total assets in securities issued or guaranteed as to principal and interest by the U.​S. government or its agencies or instrumentalities, repurchase agreements collateralized solely by cash and/​or government securities, and cash. The fund seeks to enter into repurchase agreements that present minimal credit risk, based on an assessment by Dreyfus, a division of Mellon Investments Corporation (​Dreyfus), the fund'​s sub adviser, of the counterparty'​s credit quality and capacity to meet its financial obligations, among other factors. Shares of the fund are intended to serve as reserves backing outstanding payment stablecoins. The fund does not invest in stablecoins."

It continues, "An investment in the fund is not a bank account or a bank deposit. It is not insured or guaranteed by the Federal Deposit Insurance Corporation (​FDIC) or any other government agency. You could lose money by investing in the fund. Although the fund seeks to preserve the value of your investment at $​1.​00 per share, it cannot guarantee it will do so. The fund'​s yield will fluctuate as the short-​term securities in its portfolio mature or are sold and the proceeds are reinvested in securities with different interest rates."

The filing tells us, "BNY Mellon Investment Adviser, Inc. and its affiliates are not required to reimburse the fund for losses, and you should not expect that BNY Mellon Investment Adviser, Inc. or its affiliates will provide financial support to the fund at any time, including during periods of market stress. The fund is subject to the following principal risks: Interest rate risk ...; Liquidity risk ...; and, Market risk."

Under "Stablecoin reserve risk," it says, "Shares of the fund are intended to be held by stablecoin issuers as reserves backing their outstanding payment stablecoins. The assets of the fund are therefore expected to fluctuate depending on the creation (​minting) of additional stablecoins or the redemption (​burning) of such stablecoins. Stablecoins are relatively new and may face periods of uncertainty, resulting in the potential for rapid and/​or unexpected requests by stablecoin issuers for redemption of the fund'​s shares (​including requests by multiple stablecoin issuers at the same time)."

BNY states, "Such redemption requests could adversely affect remaining fund shareholders, the fund'​s liquidity, and the fund'​s ability to maintain a stable price per share, particularly if such redemptions occur in times of overall market turmoil or declining prices. Future legislative or regulatory developments, including, but not limited to, rulemaking pursuant to the Guiding and Establishing National Innovation for U.​S. Stablecoins Act (​GENIUS Act), may affect the investments or investment strategies available in connection with managing the fund and may impact the ability of the fund to be used as a reserve backing the outstanding payment stablecoins of stablecoin issuers."

They add, "Because the fund intends to invest only in certain eligible reserve assets pursuant to the GENIUS Act, the fund'​s yield may be lower than that of other money market funds that are permitted to invest in a wider universe of investments and with longer maturities."

The filing also cites, "Large shareholder risk, writing, "From time to time, one or more shareholders may own a substantial number of fund shares or may own or control a significant percentage of the shares of the fund. The sale of a large number of shares could adversely affect remaining fund shareholders, the fund'​s liquidity, and the fund'​s ability to maintain a stable price per share, particularly if such redemptions occur in times of overall market turmoil or declining prices. Because shares of the fund are intended to be held by stablecoin issuers as reserves backing their outstanding payment stablecoins, this risk is heightened to the extent there is an event impacting multiple stablecoin issuers at the same time, or impacting stablecoins in general, that causes such investors to redeem their shares at the same time."

BNY Dreyfus also says, "The fund'​s investment adviser is BNY Mellon Investment Adviser, Inc. (​BNYIA). BNYIA has engaged its affiliate, Dreyfus, a division of Mellon Investments Corporation, to serve as the fund'​s sub-​adviser.... The fund is designed for purchase by stablecoin issuers and institutional investors. The fund'​s shares are intended to serve as reserves backing the outstanding payment stablecoins of permitted payment stablecoin issuers pursuant to the GENIUS Act."

Finally, they comment, "The fund'​s shares are also available for purchase by institutional investors, acting for themselves or in a fiduciary, advisory, agency, brokerage, custodial or similar capacity. In general, the fund'​s minimum initial investment is $[​blank], with no minimum subsequent investment, unless: (​a) the investor has invested at least $[​blank] in the aggregate among the fund and any of the Cash Management Funds, the Preferred Funds or Dreyfus Treasury and Agency Liquidity Money Market Fund; or (​b) the investor has, in the opinion of BNY Institutional Services, adequate intent and availability of assets to reach a future aggregate level of investment of $[​blank] in such funds."

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S&​P Global Ratings published its latest "U.​S. Domestic '​AAAm' Money Market Fund Trends (​Second-​Quarter 2025)," which tells us, "Rated MMF assets were unchanged quarter over quarter for both government and prime funds. As expected with tax season, rated MMF assets dipped beginning in April. They have slowly rebounded since and, following historical patterns, should build throughout the remainder of the year. Seven-​day net yields for rated government and prime MMFs fell slightly. The Federal Reserve has held its policy rate at 4.​25%-​4.​50% since December 2024, resulting in modest declines in yields since the last rate cut. During the quarter, seven-​day net yields for rated government and prime MMFs fell 2 basis points and 3 basis points, respectively. Seven-​day net yields should remain stable until the Fed decides to cut rates again." (Note: Register soon for our European Money Fund Symposium show, which will be held in just over a month, September 22-​23, 2025 in Dublin, Ireland.!)

They write on Q2, "Rated government MMFs continued adding repurchase agreements (​repo) to their portfolios, coinciding with a decline in Treasury bills. Average repo allocation increased to 42% from 39%, and average Treasury bill exposure fell to 31% from 35% the previous quarter. With the debt ceiling raised due to the recent passage of the Trump administration'​s budget, portfolio managers will not need to manage through an X-​date scenario this time around. The Treasury Department announced it will issue additional Treasury bills in the coming months, which MMFs will undoubtedly help absorb, likely resulting in a shift back into Treasury bills. Allocations to U.​S. agency securities in rated government MMFs increased slightly, driven by additional purchases of fixed agency paper."

S&​P says, "Rated prime MMFs demonstrated a similar trend to government MMFs, where more repo was purchased while Treasury bills rolled off. Treasury bill exposure by quarter-​end was the lowest this year so far, at less than 1%. Allocations to other asset classes were stable overall, with minor decreases in corporate floaters, commercial paper, and bank deposits. There was a continued increase in asset-​backed commercial paper (​ABCP), a sector where supply is experiencing sustained growth amid a rise in alternative ABCP programs."

The update adds, "Managers of rated MMFs remained cautious around adjusting weighted-​average maturities (​WAMs) amid rate and policy uncertainty. Average WAMs for rated government MMFs were unchanged at 38 days. Rated prime funds shortened WAMs by 3 days on average, to 32 days. The distribution of net asset values (​NAVs) per share for rated MMFs was stable, with some movement on the downside. The range for rated fund NAVs widened slightly to 0.​9990-​1.​0013."

S&​P also posted "European '​AAAm' Money Market Fund Trends (​Second-​Quarter 2025)." This summary tells us, "Money market funds continued to be attractive to investors in the second quarter of 2025 as Europe-​domiciled MMFs rated by S&​P Global Ratings reached an all-​time high in terms of assets under management (​AUM), totaling €​1.​25 trillion as of June 30, 2025. In the quarter, net assets in euro-​denominated funds increased by 1.​4% to €​275.​2 billion, and U.​S. dollar-​denominated funds grew by 3.​1% to more than $​725.​6 billion. Sterling-​denominated funds remained stable at £​245.​2 billion."

It explains, "This marks the fifth consecutive period of quarter-​on-​quarter growth for MMFs. Net assets in all three currencies increased over the 12 months ended June 30, 2025, with euro-​denominated funds up 31.​4%, sterling-​denominated funds up 8% (​see chart 5), and U.​S. dollar denominated funds up 16.​4%. The European Central Bank (​ECB) and the Bank of England (​BoE) both cut interest rates in the second quarter of 2025."

S&​P writes, "Following the two rate cuts by the ECB, euro MMF seven-​day yields fell 45 bps in the quarter, averaging 2.​01%. Sterling MMF yields decreased by 24 bps and averaged 4.​19%, while U.​S. dollar denominated fund average seven-​day yields were 4.​25%, a decline of 4 bps on the previous quarter."

The brief tells us, "Weighted-​average maturities (​WAM) increased slightly in euro and U.​S. dollar MMFs, while the WAM for sterling MMFs shortened. In the second quarter, we saw WAMs in euro and USD funds extend by six days and one day, respectively, while sterling fund WAMs decreased by one day. The rise in inflation in the U.​K. in April prompted fund managers to reassess the likelihood of future interest rate cuts and evaluate their duration strategy, either by maintaining or shortening the duration of their funds."

Finally, S&​P Global also published, "'​AAAm' Local Government Investment Pool Trends (​Second-​Quarter 2025)," which explains, "Rated prime LGIPs recorded continued, albeit minimal, inflows in second-​quarter 2025, with assets up 2.​49% from the prior quarter to $​318 billion from $​310 billion. Rated government pools, on the other hand, faced moderate net outflows, with assets down 16.​7% to $​92 billion from $​109 billion. Despite the recent flow divergence between the two respective strategies, we note that total LGIP assets rated on S&​P Global Ratings' PSFR scale were generally unchanged at $​410 billion, which reflected a 2.​41% decline from the prior quarter."

The ratings agency says, "Looking ahead, we anticipate a consistent trend in asset levels for the third quarter based on our historical observations of LGIP flow patterns. Generally, participant redemptions are observed in the second and third quarters, resulting in a decline in rated pool assets. However, in recent years, while withdrawals have still occurred during these quarters, total rated pool assets have been stable. This stability is attributed to elevated asset levels, which reflect appealing yields, increased tax revenue, and federal stimulus balances."

They write, "Net LGIP yields have steadily declined for the fourth consecutive quarter, given the Federal Reserve policy rate has remained at 4.​25%-​4.​50% since December 2024. Government LGIP yields fell to 4.​24% (​down 3 bps from the prior quarter), and prime LGIP yields fell to 4.​37% (​down 4 bps). In addition to the policy rate, managers’ cautious approach and shorter weighted-​average maturities have contributed to the decline in yields."

S&​P adds, "LGIPs are present in many U.​S. states where, generally, the state treasurer oversees a pooled investment vehicle that operates in a similar way to a money market fund. Typically, a cost-​effective investment option, LGIPs allow municipalities and public entities to combine their idle cash and operating balances to obtain economies of scale, through a diversified range of investments, to earn an incremental rate of return. Unlike money market funds registered with the Securities and Exchange Commission (​SEC), LGIPs are not regulated by the SEC and therefore not subject to SEC rule 2a-​7."

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A press release from Singapore titled, "OpenEden Selects BNY to Provide Investment Management and Custody Services for its Tokenized U.​S. Treasury Bills ($​TBILL) Fund," tells us, "OpenEden, a leading platform for the tokenization of Real-​World Assets ('​RWAs'), ... announced the appointment of certain affiliates of The Bank of New York Mellon Corporation ('​BNY') (​BK) ... as investment manager and primary custodian for the underlying assets of its flagship Tokenized U.​S. Treasury Bills ('$​TBILL') Fund, the world'​s first tokenized U.​S. Treasury fund to receive an investment grade '​A' rating from Moody'​s. The strategic relationship highlights OpenEden and BNY'​s shared commitment to shaping the future of financial infrastructure by facilitating regulated and institutional-​grade assets on chain for global investors." (​For more, see our August 7 News, "August Money Fund Intelligence: BNY Portal Tokenizes; ICD'​s Tory Hazard; Stablecoins in Q2.")

BNY explains, "'​Launched in 2023, OpenEden'​s $​TBILL provides investors with direct exposure to a pool of short-​dated U.​S. Treasury Bills ('​U.​S. T-​Bills') and overnight reverse repurchase agreements through the minting of the TBILL token <​b:>`​_. $​TBILL has seen rapid and accelerating adoption, indicating the surging demand from investors for regulated, institutional-​grade on-​chain cash management solutions."

The release says, "BNY Investments Dreyfus is one of the largest liquidity managers in the industry with more than five decades of proven expertise and will manage $​TBILL Fund on OpenEden'​s behalf as sub-​manager. As part of its mission to build the financial infrastructure for the future, BNY will also serve as the primary custodian for the underlying assets, leveraging its established infrastructure that administers US$​55.​8 trillion of assets and its proven track record providing asset servicing solutions that enable the digital assets ecosystem."

They quote Jeremy Ng, Founder and CEO of OpenEden, "OpenEden'​s collaboration with BNY marks a critical milestone in our mission to deliver secure, transparent, and institution-​ready tokenized financial products. Combining our tokenization platform with BNY'​s global scale and deep fiduciary expertise enables us to create a new standard for trust and access in the digital asset space."

Jose Minaya, Global Head of BNY Investments and Wealth, adds, "​BNY plays a critical role in the digital assets ecosystem, serving as a trusted bridge between traditional finance and emerging technology for clients. We are excited to extend our time-​tested liquidity investment management capabilities and asset safekeeping services to enable $​TBILL and are proud to collaborate with OpenEden as we jointly aim to support the end-​to-​end lifecycle of tokenized assets."

In other news, ThinkAdvisor writes that, "Schwab Faces Cash Sweeps Suit Alleging Elder Financial Abuse." They explain, "A proposed class action lawsuit against Charles Schwab over the interest paid in its cash sweeps program accuses the firm of elder care financial abuse in addition to breach of fiduciary duty, fraudulent inducement and other violations. In the lawsuit, ... Elizabeth L. Bueno and Abraham Atachbarian also accuse the financial services giant of unjust enrichment, breach of contract and violations of California business and professional codes."

The article explains, "The complaint addresses Schwab'​s alleged actions with respect to programs in which it automatically swept customers' uninvested cash in their non-​advisory brokerage accounts into high-​interest-​bearing deposit accounts at its affiliated banks while paying them '​unduly low interest on this money.'"

It continues, "Customers have filed multiple lawsuits nationally accusing Schwab and other asset managers of paying unreasonably low interest rates on balances in cash sweep programs and placing their own profits over clients' best interests, contending that clients could have earned significantly higher interest elsewhere. From November 2021 to May 2025, 'Schwab never paid more than 0.​45% interest to its customers in its Cash Sweeps Programs. Since December of 2024, the rate has dropped as low as .​05%,' the complaint alleges."

The piece says, "The suit alleges that '​Schwab intentionally failed to disclose the enormous spread that it was earning between the low rates of interest it paid to customers as compared to the rates that Schwab and its Program Banks were earning with customers' uninvested monies,' although the rates were published in a separate disclosure. This earned interest helped fuel Schwab'​s profits and finance its transaction with TD Bank."

ThinkAdvisor writes, "The proposed class comprises all California residents who held non-​advisory brokerage and/​or retirement accounts with Schwab and had cash deposits from those retirement accounts invested in cash sweep programs during the relevant period. A subclass includes Californians 65 or older who had cash deposits in their retirement accounts subject to cash sweep programs, according to the complaint. The case, moved from California Superior Court, appears to be a refiling or amended complaint from one filed earlier in the year."

They quote a Schwab spokesperson, "Our cash sweep program is transparent, fully disclosed, and operates in compliance with all applicable regulations. We stand firmly behind our program which aligns cash management options to our clients' financial needs and goals. We offer extensive support and flexibility, enabling clients to manage their cash in a way that best fits their individual financial needs. Whether they seek more accessible cash for daily use or prefer investments aimed at higher returns, the choice is theirs to make." (​See also our Jan. 21 Link of the Day, "WSJ: SEC, Brokerage Sweeps Settle," and our Sept. 19, 2024 News, "Bloomberg Law on Brokerage Sweep Suits.")

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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.​519 trillion, increasing from $​1.​504 trillion the month prior. The previous record high of $​1.​518 trillion was seen four months prior. Yields inched lower, while assets for `​USD, EUR and GBP MMFs all rose over the past month. Like U.​S. money fund assets, European MMFs repeatedly hit record highs in 2023, 2024 and early 2025 but in Q2. These U.​S.-​style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, increased by $​14.​3 billion over the 30 days through 8/​13. The totals are up $​86.​4 billion (​6.​0%) 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.) (Note too: With just over a month to go, register soon for our European Money Fund Symposium, which is Sept. 22-​23, 2025 in Dublin!)

Offshore US Dollar money funds increased $​4.​8 billion over the last 30 days and are up $​60.​5 billion YTD to $​804.​1 billion; they increased $​94.​1 billion in 2024. Euro funds increased E3.​3 billion over the past month. YTD, they'​re up E11.​4 billion to E329.​2 billion, for 2024, they increased by E82.​9 billion. GBP money funds increased L4.​9 billion over 30 days, and they'​re up L18.​9 billion YTD at L273.​5B, for 2024, they rose L19.​3 billion. U.​S. Dollar (​USD) money funds (​260) account for over half (​52.​9%) of the "​European" money fund total, while Euro (​EUR) money funds (​181) make up 23.​6% and Pound Sterling (​GBP) funds (​173) total 23.​4%. We summarize our latest "​offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (​which went out to subscribers Thursday), below.

Offshore USD MMFs yield 4.​22% (​7-​Day) on average (​as of 8/​13/​25), unchanged from a month earli-​er. Yields averaged 4.​20% on 12/​30/​22 and 0.​03% on 12/​31/​21. EUR MMFs, which left negative yield terri-​tory in the second half of 2022, yield 1.​91% on average, down 3 bps 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 24 months ago, but they broke back below 5.​0% 13 months ago. They now yield 4.​03%, down 16 bps from a month ago, but up from 3.​17% on 12/​30/​22. Sterling yields were 0.​01% on 12/​31/​21.

Crane'​s August MFI International Portfolio Holdings, with data as of 7/​31/​25, show that European-​domiciled US Dollar MMFs, on average, consist of 28% in Commercial Paper (​CP), 16% in Certificates of De-​posit (​CDs), 25% in Repo, 17% in Treasury securities, 12% in Other securities (​primarily Time Deposits) and 2% in Government Agency securities. USD funds have on average 49.​4% of their portfolios maturing Overnight, 4.​8% maturing in 2-​7 Days, 5.​3% maturing in 8-​30 Days, 8.​8% maturing in 31-​60 Days, 9.​0% maturing in 61-​90 Days, 14.​3% maturing in 91-​180 Days and 8.​5% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the US (​37.​2%), France (​10.​5%), Japan (​9.​3%), Canada (​9.​3%), Australia (​5.​2%), Germany (​4.​7%), the U.​K. (​4.​2%), the Netherlands (​4.​1%), Sweden (​3.​7%) and Finland (​2.​6%).

The 10 Largest Issuers to "​offshore" USD money funds include: the US Treasury with $​134.​3B (​16.​8% of total assets), Fixed Income Clearing Corp with $​40.​6B (​5.​1%), JP Morgan with $​32.​9B (​4.​1%), Credit Agricole with $​23.​9B (​3.​0%), Mizuho Corporate Bank Ltd with $​19.​9B (​2.​5%), Nordea Bank with $​19.​6B (​2.​5%), Barclays PLC with $​18.​4B (​2.​3%), Citi with $​17.​4B (​2.​2%), Sumitomo Mitsui Banking Corp with $​17.​3B (​2.​2%) and Australia & New Zealand Banking Group Ltd with $​16.​4B (​2.​0%).

Euro MMFs tracked by Crane Data contain, on average 37% in CP, 24% in CDs, 13% in Other (​primarily Time Deposits), 23% in Repo, 3% in Treasuries and 0% in Agency securities. EUR funds have on average 38.​4% of their portfolios maturing Overnight, 8.​1% maturing in 2-​7 Days, 9.​9% maturing in 8-​30 Days, 10.​0% maturing in 31-​60 Days, 10.​1% maturing in 61-​90 Days, 16.​0% maturing in 91-​180 Days and 7.​5% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (​29.​0%), Japan (​10.​4%), the U.​S. (​10.​4%), Canada (​9.​8%), the U.​K. (​5.​8%), the Netherlands (​5.​8%), Germany (​4.​6%), Australia (​4.​0%), Spain (​3.​7%) and Sweden (​3.​2%).

The 10 Largest Issuers to "​offshore" EUR money funds include: Credit Agricole with E18.​0B (​6.​2%), BNP Paribas with E15.​5B (​5.​3%), JP Morgan with E14.​0B (​4.​8%), Societe Generale with E10.​1B (​3.​5%), Republic of France with E9.​4B (​3.​2%), ING Bank with E8.​7B (​3.​0%), Sumitomo Mitsui Banking Corp with E8.​5B (​2.​9%), Agence Central de Organismes de Securite Sociale with E7.​8B (​2.​7%), Bank of Nova Scotia with E7.​4B (​2.​6%) and HSBC with E7.​2B (​2.​5%).

The GBP funds tracked by MFI International contain, on average (​as of 7/​31/​25): 38% in CDs, 17% in CP, 22% in Other (​Time Deposits), 20% in Repo, 2% in Treasury and 1% in Agency. Sterling funds have on aver-​age 37.​7% of their portfolios maturing Overnight, 8.​6% maturing in 2-​7 Days, 9.​4% maturing in 8-​30 Days, 9.​4% maturing in 31-​60 Days, 9.​3% 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: France (​17.​1%), Japan (​15.​7%), the U.​K. (​11.​8%), Canada (​11.​3%), the U.​S. (​10.​4%), Australia (​9.​6%), the Netherlands (​4.​1%), Singapore (​3.​4%), Spain (​2.​7%) and Germany (​2.​7%).

The 10 Largest Issuers to "​offshore" GBP money funds include: UK Treasury with L16.​8B (​6.​8%), Mizuho Corporate Bank Ltd with L13.​2B (​5.​3%), BNP Paribas with L10.​9B (​4.​4%), RBC with L9.​2B (​3.​7%), JP Morgan with L8.​7B (​3.​5%), Sumitomo Mitsui Banking Corp with L8.​4B (​3.​4%), National Australia Bank Ltd with L8.​2B (​3.​3%), Mitsubishi UFJ Financial Group Inc with L7.​8B (​3.​1%), Credit Agricole with L7.​8B (​3.​1%) and Australia & New Zealand Banking Group Ltd with L7.​6B (​3.​0%).

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The August issue of our Bond Fund Intelligence, which was sent to subscribers Thursday morning, features the stories, "Maturity Main Risk of Bond Funds Says Journal Study," which covers a recent study from Wall Street Journal; and "EFAMA Fact Book Reviews European Bond Funds in '​24," which looks at annual statistics compilation on European funds. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns were flat to mixed while yields were 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, "The Wall Street Journal writes, 'Forget About Bond Ratings. This Is the Biggest Fixed-​Income Risk.' They comment, 'Many investors think the riskiness of their bond portfolio is in the default risk or the country of origin of their holdings. But, in fact, the main source of risk in your bond portfolio is the length of time to maturity of the bonds or bond funds.'"

It continues, "​The piece explains, '​To study this issue, my research assistants (​Huzaifah Shafique and Arnav Pradhan) and I pulled all U.​S. dollar-​denominated fixed-​income mutual-​fund data going back 40 years. We then took the average monthly returns across the following fixed-​income groupings: short-​term Treasury funds (​average maturity of six months), long-​term Treasury funds (​average maturity of 20 years), intermediate Treasury funds (​average maturity of six years), world debt funds (​average maturity of six years), high-​yield corporate debt (​average maturity of five years) and investment-​grade corporate debt (​average maturity of 10 years).'"

Our "EFAMA" article states, "EFAMA, the European Fund and Asset Management Association, published its annual 'Fact Book' recently, which includes statistics on European funds and a section on European bond funds. They write, 'Bond UCITS experienced a strong year in 2024, attracting EUR 275 bn in net inflows -- the third-​highest of the decade -- and almost double that of 2023 (​EUR 142 bn). Net assets also rose -- to EUR 3.​6 tn -- a 14% asset growth compared to end 2023. Bond fund flows are heavily influenced by interest rate evolutions and investor anticipations of future rates; 2024 was no different. The ECB cut interest rates four times during 2024, and signaled that they could be cut even further in 2025. Other major central banks, such as the Federal Reserve and the BoE, also lowered interest rates during 2024.'"

We write, "​The Fact Book continues, 'Price effects generally have a smaller impact on overall asset growth in bond funds compared to equity funds, as bond prices tend to be less volatile than stock prices. In 2024, market appreciation contributed approximately 5% to the 14% overall asset growth, with net sales making up nearly 9%. In some years, however, there are larger price effects; in 2022, most of the 15% net asset decline was due to an 11% drop in bond values and only 4% to net outflows.'"

Our first News brief, "Returns Mixed, Yields Lower in July," says, "Bond fund returns were flat in July after being higher in June. Our BFI Total Index rose 0.​02% over 1-​month and rose 4.​09% over 12 months. (​Money funds rose 4.​49% over 1-​year as measured by our Crane 100 Index.) The BFI 100 decreased 0.​05% in July and rose 4.​53% over 12 mos. Our BFI Conservative Ultra-​Short Index was up 0.​32% over 1-​month and 4.​82% for 1-​year; Ultra-​Shorts rose 0.​31% and 5.​13%. Short-​Term returned 0.​12% and 5.​36%, and Intm-​Term fell 0.​13% in July and 3.​88% over 12 mos. BFI'​s Long-​Term Index was down 0.​16% but up 3.​59%. High Yield returned 0.​41% in July and 7.​00% over 12 months."

A second News brief, "Barron'​s Says, 'Bond Funds Are Supposed to Be Better Than Indexes. Not This Year.' They write, 'Actively managed bond funds are having a terrible year.... Investors have more than $​4 trillion invested in active bond funds <​b:>`​_ — which, historically, have a far better chance of delivering market-​beating returns than active stock-​picking funds.... Recently however, active bond funds have been taking it on the chin. Just 31% of active bond funds outperformed comparable index funds for the 12 months ended June 30, according to a report released Tuesday by Morningstar.'"

Our next News brief, "Morningstar on the 'Top-​Performing Corporate Bond Funds' They tell us, 'Corporate bond exchange-​traded funds can be an easy and inexpensive way for investors to access a broad, diversified portfolio of bonds that would be hard for individual investors to assemble.' The piece mentions: iShares 5-​10 Year Investment Grade Corporate Bond ETF (​IGIB), SPDR Portfolio Intermediate Term Corporate Bond ETF (​SPIB), Vanguard Intermediate-​Term Corporate Bond Index Fund (​VCIT) and Vanguard Intermediate-​Term Investment Grade Fund (​VFIDX). MStar also writes on 'The 14 Top Vanguard Bond ETFs to Buy in 2025.'"

A BFI sidebar, "Rethink Bond Fund Strategy," tells us, "Barron'​s writes 'Rates Are Falling. It'​s Time to Rethink Your Bond Strategy.' They explain, 'The yield curve, a line graph showing the yields of bonds short- to long-​term, got a lot steeper last Friday after a weak jobs report showed the economy is cooling.... With rates coming down as the yield curve steepens, extending maturities makes sense—​but not too far, say strategists. Many recommend bonds maturing in five to seven years. In Treasuries, that'​s where you get most of the yield but avoid the volatility of longer-​term bonds. 'Investors aren'​t really being compensated for lengthening duration too much,' [​SSIM'​s Michael] Arone says. His firm'​s SPDR Portfolio Intermediate Term Treasury ETF yields 4%.'"

Finally, another sidebar, "Barron'​s on Active BFs," says, "Barron'​s tells us 'Why These Active Bond Funds Are Worth a Premium.' They comment, 'While low-​cost index funds like Vanguard Total Bond Market are still reliable holdings, it'​s a good time to consider active funds with flexible mandates to play offense and defense.... '​Bonds are a great opportunity right now,' says Campe Goodman, manager of the Hartford Strategic Income ETF.'"

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Goldman Sachs Asset Management filed to launch a new fund titled, Stablecoin Reserves Fund, Institutional Shares. The "Form N-​1A Registration Statement" says, "The Stablecoin Reserves Fund (​the '​Fund') seeks to maximize current income to the extent consistent with the preservation of capital and the maintenance of liquidity by investing exclusively in high quality money market instruments. The Fund pursues its investment objective by investing, under normal circumstances, only in certain eligible reserve assets in which payment stablecoin issuers are permitted to maintain under the GENIUS Act and any regulations adopted thereunder. These eligible reserve assets include, and the Fund intends to invest only in, cash, 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 and overnight repurchase agreements collateralized by U.​S. Treasury Obligations." (Note: It'​s unclear who the stablecoin client is for this new fund yet, or if there are any. For more on Stablecoins and MMFs, see our August 7 News, "August MFI: BNY Portal Tokenizes; ICD'​s Tory Hazard; Stablecoins in Q2.")

It explains, "The Fund intends to be a '​government money market fund,' as such term is defined in or interpreted under Rule 2a-​7 under the Investment Company Act of 1940, as amended.... '​Government money market funds' are money market funds that invest at least 99.​5% of their total assets in cash, securities issued or guaranteed by the United States or certain U.​S. government agencies or instrumentalities, and/​or repurchase agreements that are collateralized fully by cash or U.​S. Government Securities."

They state, "'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 seeks to maintain a stable net asset value ('​NAV') of $​1.​00 per share. Under Rule 2a-​7, the Fund may invest only in U.​S. dollar-​denominated securities that meet certain risk-​limiting conditions relating to portfolio quality, maturity and liquidity."

Discussing "Stablecoin Issuer Shareholder Transactions Risk," the filing tells us, "Shares of the Fund are expected to be held primarily by one or more stablecoin issuers as all or a portion of the reserve assets that back the stablecoins issued to their customers. Stablecoins generally are a type of cryptocurrency that are designed to maintain a stable value by pegging their value to another asset, such as a fiat currency like the U.​S. dollar, and stablecoin holders generally are permitted to redeem their stablecoins for a fixed amount of value. Although the Fund does not invest in stablecoins or stablecoin issuers, the assets of the Fund are expected to fluctuate depending on the creation (​minting) of additional stablecoins or the redemption (​burning) of outstanding stablecoins."

GSAM writes, "Stablecoins 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 the Fund'​s shares. Such uncertainty or volatility may result from events that are not specifically related to a stablecoin issuer, such as changes in general market conditions, economic, technological or legal trends or changes to the laws or regulation of stablecoins, or events that are specifically related to a particular stablecoin issuer, such as uncertainty about the stablecoin issuer'​s ability to maintain a consistent peg between the stablecoins issued to its customers and another asset, such as a fiat currency like the U.​S. dollar. Because the Fund intends to invest only in certain eligible reserve assets in which payment stablecoin issuers are permitted to maintain under the GENIUS Act, the Fund'​s yield may be lower than other money market funds that are permitted to invest in a wider universe of investments."

The statement adds, "Goldman Sachs Asset Management, L.​P. is the investment adviser for the Fund. Generally, Institutional Shares may be purchased only through Goldman Sachs & Co. LLC ('​Goldman Sachs') or certain intermediaries that have a relationship with Goldman Sachs.... The minimum initial investment requirement imposed upon Intermediaries for the purchase of Institutional Shares is generally $​10 million, and there is no minimum imposed upon additional investments. Intermediaries may, however, impose a minimum amount for initial and additional investments in Institutional Shares, and may establish other requirements such as a minimum account balance. You may purchase and redeem (​sell) shares of the Fund on any business day through an Intermediary."

In related news, Circle Internet Group released its Q2 earnings yesterday, and the manager of the second largest stablecoin gave more color on the space. On the earnings call, CEO Jeremy Allaire comments, "USDC, the core of our stablecoin network, has grown to $​61.​3B at June 30, and growth has accelerated into Q3 to $​65.​2 billion dollars in circulation as of August 10, representing approximately 90% year over year growth and 49% growth year to date, making USDC the fastest growing major stablecoin over the past year. In Q2, USDC on chain transaction volume grew 5.​4x year over year to nearly $​6,​000B. Our transaction volumes have also accelerated into Q3 with $​2,​400B in transactions in July alone."

He explains, "As we look at the overall stablecoin market, we believe that the total addressable market for stablecoins and our products is massive, with dollar stablecoins only representing a mere 1% of The U.​S. M2 money supply, but with continued rapid growth in stablecoin supply. Today, Circle operates the largest regulated stablecoin network in the world. We talk about this a lot. Stablecoins are network businesses and have meaningful network effects."

Allaire says, "​Growth of our Stablecoin network is driven by our platform, our blockchain protocols, and the developers building applications and services on our network. That expands the Circle on chain ecosystem and is the classic flywheel that has driven the growth of our Stablecoin network since its launch in 2018. Like other Internet platforms and network businesses, stablecoins are a winner take most market as liquidity and utility complement each other and drive growth. There have been many regulated and unregulated dollar stablecoins and many more to come, but the strength and resiliency of Circle'​s network effects positions us well to compete and grow. Turning to the regulatory environment, Circle'​s market and competitive strength is further cemented with the signing of the Genius Act, creating powerful tailwinds for Circle."

He continues, "We believe this law will accelerate stablecoin adoption by major financial institutions, mainstream enterprises, technology companies, and ultimately drive much broader use of stablecoins across retail and wholesale payments as well as broader usage in '​Trad-​Fi' capital markets. This is likely the catalytic moment for the mainstream scaling of stablecoins, and we are already seeing this in our business momentum. Turning to our products and platform, we are continuing to make progress with our core digital asset products USDC, EURC and USYC. With USDC, we expanded our distribution onto eight new blockchain networks in 2025 and significantly expanded CCTP version two availability, both of which continue to cement USDC as the most liquid and available on chain dollar stablecoin."

Allaire tells the call, "We also now offer a yield token, USYC, that can be used in both digital asset and traditional capital markets as collateral with 24/​7/​365 liquidity between USYC and USDC. We'​re now executing that strategy, driven by our expanded partnership with Binance, who will now make USYC available as collateral, unlocking a very powerful use of USYC on the largest exchange in the world, and we'​re already seeing accelerating adoption there. We'​ve continued to expand our core banking and liquidity capabilities, including with multiple GSIBs, strengthening our unrivaled industry position. During Q2, we undertook the launch of one of the most ambitious new product investments, Circle Payments Network, our initiative to transform international money movement, which today already has active payment corridors in Hong Kong, Brazil, Nigeria and Mexico. We have rapidly grown our pipeline of financial institutions interested in launching on CPN to over 100 firms."

Finally, CFO Jeremy Fox-​Gein adds, "We make money in two ways. First, we monetize the money stock on the network through reserve income, which we earn on the cash equivalent assets we hold to back our stablecoins. And we are also starting to monetize certain transaction flows and elements of our network infrastructure.... USDC in circulation stood at $​61.​3B at quarter end.... The reserve return rate was 4.​14% for the second quarter, reflecting the decline in SOFR during this period. Total revenue and reserve income increased 53% year on year to $​658,​000,​000 in the second quarter as growth in USDC and circulation was partly offset by a lower reserve return rate."

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Crane Data'​s August Money Fund Portfolio Holdings, with data as of July 31, 2025, show that holdings of Repo plunged last month while Treasuries jumped. Money market securities held by Taxable U.​S. money funds (​tracked by Crane Data) increased by $​17.​6 billion to $​7.​372 trillion in July, after increasing $​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. Repo, the largest segment, decreased $​128.​1 billion in July. Treasuries, the second largest portfolio composition segment, increased by $​117.​3 billion. 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, Repurchase Agreements (​repo) decreased $​128.​1 billion (-​4.​1%) to $​2.​972 trillion, or 40.​3% of holdings, in July, after increasing $​194.​2 billion in June, $​63.​3 billion in May and $​31.​4 billion in April. Treasury securities increased $​117.​3 billion (​4.​5%) to $​2.​724 trillion, or 37.​0% of holdings, after decreasing $​98.​4 billion in June, $​2.​1 billion in May and $​168.​3 billion in April. Government Agency Debt was up $​0.​8 billion, or 0.​1%, to $​986.​0 billion, or 13.​4% of holdings. Agencies increased $​8.​8 billion in June, $​4.​8 billion in May and $​75.​1 billion in April. Repo, Treasuries and Agency holdings now total $​6.​682 trillion, representing a massive 90.​6% of all taxable holdings.

Money fund holdings of CP, CDs and Other (​Time Deposits) all rose in July. Commercial Paper (​CP) increased 12.​3 billion (​4.​1%) to $​314.​2 billion, or 4.​3% of holdings. CP holdings decreased $​9.​7 billion in June, increased $​8.​7 billion in May and decreased $​9.​6 billion in April. Certificates of Deposit (​CDs) increased $​1.​9 billion (​1.​0%) to $​202.​5 billion, or 2.​7% of taxable assets. CDs decreased $​2.​1 billion in June but increased $​4.​2 billion in May and $​4.​0 billion in April. Other holdings, primarily Time Deposits, increased $​13.​0 billion (​9.​0%) to $​158.​2 billion, or 2.​1% of holdings, after decreasing $​8.​7 billion in June, $​6.​8 billion in May and $​6.​6 billion in April. Other increased $​8.​2 billion in March. VRDNs increased to $​15.​0 billion, or 0.​2% of assets. (​Note: This total is VRDNs for taxable funds only. We will post our Tax Exempt MMF holdings separately Tuesday around noon.)

Prime money fund assets tracked by Crane Data increased to $​1.​296 trillion, or 17.​6% of taxable money funds' $​7.​372 trillion total. Among Prime money funds, CDs represent 15.​6% (​down from 15.​9% a month ago), while Commercial Paper accounted for 24.​2% (​up from 23.​9% a month ago). The CP totals are comprised of: Financial Company CP, which makes up 14.​8% of total holdings, Asset-​Backed CP, which accounts for 7.​3%, and Non-​Financial Company CP, which makes up 2.​1%. Prime funds also hold 0.​5% in US Govt Agency Debt, 6.​1% in US Treasury Debt, 20.​5% in US Treasury Repo, 1.​0% in Other Instruments, 9.​3% in Non-​Negotiable Time Deposits, 8.​8% in Other Repo, 12.​8% in US Government Agency Repo and 0.​9% in VRDNs.

Government money fund portfolios totaled $​3.​987 trillion (​54.​1% of all MMF assets), up from $​3.​980 trillion in June, while Treasury money fund assets totaled another $​2.​090 trillion (​28.​4%), down from $​2.​115 trillion the prior month. Government money fund portfolios were made up of 24.​6% US Govt Agency Debt, 19.​5% US Government Agency Repo, 27.​3% US Treasury Debt, 28.​0% in US Treasury Repo, 0.​4% in Other Instruments. Treasury money funds were comprised of 74.​5% US Treasury Debt and 25.​4% in US Treasury Repo. Government and Treasury funds combined now total $​6.​076 trillion, or 82.​4% of all taxable money fund assets.

European-​affiliated holdings (​including repo) increased by $​114.​2 billion in July to $​773.​8 billion; their share of holdings rose to 10.​5% from last month'​s 9.​0%. Eurozone-​affiliated holdings increased to $​529.​5 billion from last month'​s $​456.​5 billion; they account for 7.​2% of overall taxable money fund holdings. Asia & Pacific related holdings rose to $​357.​5 billion (​4.​9% of the total) from last month'​s $​343.​0 billion. Americas related holdings fell to $​6.​234 trillion from last month'​s $​6.​347 trillion; they now represent 84.​6% of holdings.

The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (​down $​132.​1 billion, or -​6.​5%, to $​1.​913 trillion, or 26.​0% of assets); US Government Agency Repurchase Agreements (​down $​6.​3 billion, or -​0.​7%, to $​944.​8 billion, or 12.​8% of total holdings), and Other Repurchase Agreements (​up $​10.​3 billion, or 9.​9%, from last month to $​113.​7 billion, or 1.​5% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (​up $​9.​1 billion to $​192.​1 billion, or 2.​6% of assets), Asset Backed Commercial Paper (​down $​4.​0 billion at $​94.​5 billion, or 1.​3%), and Non-​Financial Company Commercial Paper (​up $​7.​2 billion to $​27.​6 billion, or 0.​4%).

The 20 largest Issuers to taxable money market funds as of July 31, 2025, include: the US Treasury ($​2.​724T, 37.​0%), Fixed Income Clearing Corp ($​1.​102T, 14.​9%), Federal Home Loan Bank ($​726.​7B, 9.​9%), JP Morgan ($​293.​4B, 4.​0%), Citi ($​192.​6B, 2.​6%), the Federal Reserve Bank of New York ($​179.​9B, 2.​4%), Federal Farm Credit Bank ($​175.​6B, 2.​4%), BNP Paribas ($​173.​1B, 2.​3%), RBC ($​141.​5B, 1.​9%), Wells Fargo ($​127.​3B, 1.​7%), Bank of America ($​120.​3B, 1.​6%), Barclays PLC ($​105.​1B, 1.​4%), Sumitomo Mitsui Banking Corp ($​93.​1B, 1.​3%), Credit Agricole ($​78.​2B, 1.​1%), Goldman Sachs ($​74.​1B, 1.​0%), Mitsubishi UFJ Financial Group Inc ($​67.​8B, 0.​9%), Canadian Imperial Bank of Commerce ($​62.​4B, 0.​8%), Societe Generale ($​56.​1B, 0.​8%), Federal Home Loan Mortgage Corp ($​51.​4B, 0.​7%) and Toronto-​Dominion Bank ($​50.​7B, 0.​7%).

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 ($​1.​078T, 36.​3%), JP Morgan ($​280.​5B, 9.​4%), Citi ($​181.​6B, 6.​1%), the Federal Reserve Bank of New York ($​179.​9B, 6.​1%), BNP Paribas ($​161.​1B, 5.​4%), Wells Fargo ($​126.​1B, 4.​2%), RBC ($​100.​5B, 3.​4%), Bank of America ($​94.​1B, 3.​2%), Barclays PLC ($​84.​5B, 2.​8%) and Sumitomo Mitsui Banking Corp ($​77.​5B, 2.​6%).

The largest users of the $​179.​9 billion in Fed RRP include: Fidelity Cash Central Fund ($​42.​6B), Vanguard Federal Money Mkt Fund ($​30.​1B), Fidelity Sec Lending Cash Central Fund ($​20.​0B), Vanguard Cash Reserves Federal MM ($​9.​4B), Vanguard Market Liquidity Fund ($​9.​2B), Goldman Sachs FS Treas Sol ($​8.​0B), Vanguard Treasury Money Market ($​6.​3B), Schwab Treasury Oblig MF ($​5.​9B), Columbia Short-​Term Cash Fund ($​5.​0B) and T Rowe Price Govt Reserve Fund ($​4.​0B).

The 10 largest issuers of "​credit" -- CDs, CP and Other securities (​including Time Deposits and Notes) combined -- include: RBC ($​41.​0B, 6.​8%), Toronto-​Dominion Bank ($​31.​8B, 5.​2%), Mizuho Corporate Bank Ltd ($​28.​7B, 4.​7%), Bank of America ($​26.​2B, 4.​3%), Mitsubishi UFJ Financial Group Inc ($​24.​8B, 4.​1%), Fixed Income Clearing Corp ($​23.​3B, 3.​8%), ING Bank ($​23.​0B, 3.​8%), Australia & New Zealand Banking Group Ltd ($​20.​6B, 3.​4%), Barclays PLC ($​20.​5B, 3.​4%) and Credit Agricole ($​19.​8B, 3.​3%). The 10 largest CD issuers include: Sumitomo Mitsui Trust Bank ($​16.​5B, 8.​2%), Mitsubishi UFJ Financial Group Inc ($​15.​7B, 7.​8%), Sumitomo Mitsui Banking Corp ($​14.​5B, 7.​2%), Bank of America ($​14.​1B, 7.​0%), Toronto-​Dominion Bank ($​13.​4B, 6.​6%), Credit Agricole ($​13.​3B, 6.​6%), Mizuho Corporate Bank Ltd ($​9.​6B, 4.​8%), Canadian Imperial Bank of Commerce ($​9.​4B, 4.​7%), Mitsubishi UFJ Trust and Banking Corporation ($​8.​9B, 4.​4%) and Truist Financial Corp. ($​6.​0B, 3.​0%).

The 10 largest CP issuers (​we include affiliated ABCP programs) include: RBC ($​27.​3B, 9.​6%), Toronto-​Dominion Bank ($​16.​0B, 5.​6%), Barclays PLC ($​14.​2B, 5.​0%), JP Morgan ($​12.​9B, 4.​5%), Bank of Montreal ($​12.​8B, 4.​5%), Landesbank Baden-​Wurttemberg ($​11.​0B, 3.​8%), Northcross Capital Management ($​9.​3B, 3.​3%), Mitsubishi UFJ Financial Group Inc ($​9.​1B, 3.​2%), National Bank of Canada ($​8.​5B, 3.​0%) and BNP Paribas ($​8.​4B, 2.​9%).

The largest increases among Issuers include: the US Treasury (​up $​117.​3B to $​2.​724T), Citi (​up $​36.​1B to $​192.​6B), Fixed Income Clearing Corp (​up $​30.​4B to $​1.​102T), Barclays PLC (​up $​24.​9B to $​105.​1B), Credit Agricole (​up $​17.​9B to $​78.​2B), Mizuho Corporate Bank Ltd (​up $​14.​8B to $​46.​3B), Erste Group Bank AG (​up $​11.​3B to $​12.​7B), Banco Bilbao Vizcaya Argentaria SA (​up $​9.​9B to $​16.​8B), Landesbank Baden-​Wurttemberg (​up $​8.​3B to $​17.​4B) and Bank of America (​up $​7.​3B to $​120.​3B).

The largest decreases among Issuers of money market securities (​including Repo) in July were shown by: the Federal Reserve Bank of New York (​down $​209.​5B to $​179.​9B), RBC (​down $​79.​6B to $​141.​5B), Bank of Nova Scotia (​down $​8.​6B to $​23.​8B), Canadian Imperial Bank of Commerce (​down $​7.​4B to $​62.​4B), Federal Home Loan Bank (​down $​6.​8B to $​726.​7B), National Bank of Canada (​down $​2.​9B to $​11.​5B), Goldman Sachs (​down $​2.​4B to $​74.​1B), Bank of Montreal (​down $​2.​3B to $​47.​9B), ING Bank (​down $​2.​2B to $​36.​3B) and Skandinaviska Enskilda Banken AB (​down $​1.​0B to $​18.​8B).

The United States remained the largest segment of country-​affiliations; it represents 80.​0% of holdings, or $​5.​894 trillion. France (​4.​9%, $​357.​5B) was in second place, while Canada (​4.​6%, $​339.​7B) was No. 3. Japan (​3.​9%, $​286.​8B) occupied fourth place. The United Kingdom (​2.​5%, $​186.​4B) remained in fifth place. Netherlands (​0.​8%, $​58.​0B) was in sixth place, followed by Australia (​0.​7%, $​53.​5B), Germany (​0.​7%, $​53.​0B), Spain (​0.​6%, $​44.​2B), and Sweden (​0.​5%, $​36.​2B). (​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 July 31, 2025, Taxable money funds held 50.​6% (​down from 54.​2%) of their assets in securities maturing Overnight, and another 10.​4% maturing in 2-​7 days (​down from 9.​1%). Thus, 61.​0% in total matures in 1-​7 days. Another 6.​4% matures in 8-​30 days, while 9.​8% matures in 31-​60 days. Note that over three-​quarters, or 77.​2% 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.​3% of taxable securities, while 10.​2% matures in 91-​180 days, and just 5.​3% matures beyond 181 days.

​

Crane Data'​s latest monthly Money Fund Portfolio Holdings statistics will be sent out Monday, and we'​ll be writing our regular monthly update on the new August data for Tuesday'​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 Friday. (​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 July 31, includes holdings information from 989 money funds (​down 14 from last month), representing assets of $​7.​530 trillion (​up from $​7.​517 trillion a month ago). Prime MMFs rose to $​1.​182 trillion (​up from $​1.​150 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 inched lower to $​19.​7 billion (​annualized) in July.

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 $​2.​730 trillion (​up from $​2.​614 trillion), or 36.​3% of all assets, while Repo holdings fell to $​2.​976 trillion (​down from $​3.​104 billion), or 39.​5% of all holdings. Government Agency securities total $​993.​1 billion (​up from $​992.​5 billion), or 13.​2%. Holdings of Treasuries, Government agencies and Repo (​almost all of which is backed by Treasuries and agencies) combined total $​6.​699 trillion, or a massive 89.​0% of all holdings.

The Other category (​primarily Time Deposits) totals $​166.​4 billion (​up from $​153.​3 billion), or 2.​2%, and Commercial Paper (​CP) totals $​324.​0 billion (​up from $​312.​1 billion), or 4.​3% of all holdings. Certificates of Deposit (​CDs) total $​202.​3 billion (​up from $​200.​4 billion), 2.​7%, and VRDNs account for $​138.​6 billion (​down from $​140.​7 billion), or 1.​8% of money fund securities.

Broken out into the SEC'​s more detailed categories, the CP totals were comprised of: $​192.​1 billion, or 2.​6%, in Financial Company Commercial Paper; $​94.​4 billion or 1.​3%, in Asset Backed Commercial Paper; and, $​37.​5 billion, or 0.​5%, in Non-​Financial Company Commercial Paper. The Repo totals were made up of: U.​S. Treasury Repo ($​1.​935 trillion, or 25.​7%), U.​S. Govt Agency Repo ($​921.​9B, or 12.​2%) and Other Repo ($​119.​4B, or 1.​6%).

The N-​MFP Holdings summary for the Prime Money Market Funds shows: CP holdings of $​280.​9 billion (​up from $​272.​0 billion), or 23.​8%; Repo holdings of $​511.​5 billion (​down from $​549.​9 billion), or 43.​3%; Treasury holdings of $​76.​2 billion (​up from $​32.​8 billion), or 6.​5%; CD holdings of $​174.​3 billion (​up from $​173.​8 billion), or 14.​7%; Other (​primarily Time Deposits) holdings of $​122.​1 billion (​up from $​106.​0 billion), or 10.​3%; Government Agency holdings of $​6.​0 billion (​up from $​5.​5 billion), or 0.​5% and VRDN holdings of $​10.​7 billion (​up from $​10.​4 billion), or 0.​9%.

The SEC'​s more detailed categories show CP in Prime MMFs made up of: $​172.​6 billion (​up from $​165.​4 billion), or 14.​6%, in Financial Company Commercial Paper; $​83.​7 billion (​down from $​87.​5 billion), or 7.​1%, in Asset Backed Commercial Paper; and $​24.​7 billion (​up from $​19.​1 billion), or 2.​1%, in Non-​Financial Company Commercial Paper. The Repo totals include: U.​S. Treasury Repo ($​249.​0 billion, or 21.​1%), U.​S. Govt Agency Repo ($​157.​1 billion, or 13.​3%), and Other Repo ($​105.​5 billion, or 8.​9%).

In related news, money fund charged expense ratios (​Exp%) were mostly flat in July. Our Crane 100 Money Fund Index and Crane Money Fund Average were 0.​26% and 0.​37%, respectively, as of July 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 Friday morning, so we revised our monthly MFI XLS spreadsheet and historical cranein-​dexes.​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%, unchanged 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 July 31, 2025, unchanged from the month prior and slightly below the 0.​40% at year-​end 2019.

​

Crane Data'​s latest monthly Money Fund Market Share rankings show assets mostly higher among the largest U.​S. money fund complexes in July after being slightly higher in June. Assets have increased in 12 of the past 13 months (​only April 2025 saw a decline). Money market fund assets rose by $​69.​2 billion, or 0.​9%, last month to a record $​7.​483 trillion. Total MMF assets have increased by $​166.​0 billion, or 2.​3%, over the past 3 months, and they'​ve increased by $​969.​9 billion, or 14.​9%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by Fidelity, JPMorgan, Federated Hermes, BlackRock and Morgan Stanley, which grew assets by $​20.​4 billion, $​13.​7B, $​12.​6B, $​10.​8B and $​7.​5B, respectively. Declines in July were seen by Vanguard, T Rowe Price, First American, DWS and American Funds, which decreased by $​6.​0 billion, $​4.​7B, $​4.​4B, $​3.​8B and $​2.​6B, 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 flat to slightly higher in July.

Over the past year through July 31, 2025, Fidelity (​up $​233.​1B, or 17.​5%), BlackRock (​up $​123.​8B, or 23.​5%), JPMorgan (​up $​122.​3B, or 18.​3%) Schwab (​up $​113.​3B, or 20.​8%) and Vanguard (​up $​83.​8B, or 13.​8%) were the `​largest gainers. Fidelity, BlackRock, JPMorgan, Federated Hermes and Schwab had the largest asset increases over the past 3 months, rising by $​44.​2B, $​32.​3B, $​28.​3B, $​23.​4B and $​20.​6B, respectively. The largest declines over 12 months were seen by: American Funds (​down $​3.​1B) and Columbia (​down $​1.​4B). The largest declines over 3 months included: Goldman Sachs (​down $​14.​8B), American Funds (​down $​10.​5B), T Rowe Price (​down $​2.​7B) and Northern (​down $​1.​5B).

Our latest domestic U.​S. Money Fund Family Rankings show that Fidelity Investments remains the largest money fund manager with $​1.​565 trillion, or 20.​9% of all assets. Fidelity was up $​20.​4B in July, up $​44.​2 billion over 3 mos., and up $​233.​1B over 12 months. JPMorgan ranked second with $​790.​2 billion, or 10.​6% market share (​up $​13.​7B, up $​28.​3B and up $​122.​3B for the past 1-​month, 3-​mos. and 12-​mos., respectively). Vanguard ranked in third place with $​690.​3 billion, or 9.​2% of assets (​down $​6.​0B, up $​10.​0B and up $​83.​8B). Schwab ranked fourth with $​658.​1 billion, or 8.​8% market share (​up $​4.​7B, up $​20.​6B and up $​113.​3B), while BlackRock was the fifth largest MMF manager with $​650.​7 billion, or 8.​7% of assets (​up $​10.​8B, up $​32.​3B and up $​123.​8B for the past 1-​month, 3-​mos. and 12-​mos.).

Federated Hermes was in sixth place with $​495.​0 billion, or 6.​6% (​up $​12.​6B, up $​23.​4B and up $​47.​2B), while Goldman Sachs was in seventh place with $​417.​6 billion, or 5.​6% of assets (​up $​1.​7B, down $​14.​8B and up $​27.​6B). Dreyfus ($​304.​4B, or 4.​1%) was in eighth place (​up $​7.​3B, up $​12.​7B and up $​34.​5B), followed by Morgan Stanley ($​282.​1B, or 3.​8%; up $​7.​5B, down $​0.​6B and up $​40.​9B). SSIM was in 10th place ($​241.​1B, or 3.​2%; up $​0.​2B, down $​1.​3B and up $​25.​8B).

The 11th through 20th-​largest U.​S. money fund managers (​in order) include: Allspring ($​215.​8B, or 2.​9%), Northern ($​178.​8B, or 2.​4%), First American ($​169.​9B, or 2.​3%), American Funds ($​165.​5B, or 2.​2%), Invesco ($​165.​5B, or 2.​2%), UBS ($​116.​3B, or 1.​6%), T. Rowe Price ($​49.​8B, or 0.​7%), HSBC ($​48.​2B, or 0.​6%), DWS ($​40.​7B, or 0.​5%) and Western ($​34.​7B, or 0.​5%). Crane Data currently tracks 61 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, Vanguard moves down to No. 4 and Schwab moves down to the No. 5 spot. Goldman Sachs moves up to the No. 6 spot, while Federated Hermes moves down to the No. 7 spot and Morgan Stanley moves up to the No. 8 spot, while Dreyfus moves down to the No. 9 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 ($​1.​586 trillion), JP Morgan ($​1.​062 trillion), BlackRock ($​980.​1B), Vanguard ($​690.​3B) and Schwab ($​658.​1B). Goldman Sachs ($​574.​0B) was in sixth, Federated Hermes ($​507.​5B) was seventh, followed by Morgan Stanley ($​379.​3B), Dreyfus/​BNY ($​365.​8B) and SSIM ($​295.​0B), 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 August issue of our Money Fund Intelligence and MFI XLS, with data as of 7/​31/​25, shows that yields were mixed in July across all the Crane Money Fund Indexes. The Crane Money Fund Average, which includes all taxable funds covered by Crane Data (​currently 722), was 4.​02% (​up 1 bp) for the 7-​Day Yield (​annualized, net) Average, the 30-​Day Yield was up 1 bp to 4.​01%. The MFA'​s Gross 7-​Day Yield was at 4.​39% (​unchanged), and the Gross 30-​Day Yield was up 1 bp at 4.​38%. (Gross yields will be revised once we download the SEC'​s Form N-​MFP data for 7/​31/​25 on Friday.)

Our Crane 100 Money Fund Index shows an average 7-​Day (​Net) Yield of 4.​12% (​unchanged) and an average 30-​Day Yield at 4.​11% (​up 1 bp). The Crane 100 shows a Gross 7-​Day Yield of 4.​39% (​unchanged), and a Gross 30-​Day Yield of 4.​38% (​up 1 bp). Our Prime Institutional MF Index (​7-​day) yielded 4.​25% (​down 1 bp) as of July 31. The Crane Govt Inst Index was at 4.​13% (​unchanged) and the Treasury Inst Index was at 4.​07% (​unchanged). Thus, the spread between Prime funds and Treasury funds is 18 basis points, and the spread between Prime funds and Govt funds is 12 basis points. The Crane Prime Retail Index yielded 4.​00% (​unchanged), while the Govt Retail Index was 3.​84% (​unchanged), the Treasury Retail Index was 3.​85% (​up 3 bps from the month prior). The Crane Tax Exempt MF Index yielded 2.​44% (​up 23 bps) at the end of July.

Gross 7-​Day Yields for these indexes to end July were: Prime Inst 4.​48% (​down 1 bp), Govt Inst 4.​38% (​unchanged), Treasury Inst 4.​35% (​up 1 bp), Prime Retail 4.​49% (​unchanged), Govt Retail 4.​38% (​unchanged) and Treasury Retail 4.​36% (​up 2 bps). The Crane Tax Exempt Index rose to 2.​84% (​up 23 bps). The Crane 100 MF Index returned on average 0.​35% over 1-​month, 1.​04% over 3-​months, 2.​32% YTD, 4.​49% over the past 1-​year, 4.​51% over 3-​years annualized), 2.​74% over 5-​years, and 1.​86% over 10-​years.

The total number of funds, including taxable and tax-​exempt, was up 1 in July at 835. There are currently 722 taxable funds, up 1 from the previous month, and 113 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 August issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Thursday morning, features the articles: "BNY Portal Offers Tokenized Shares of 5 Major Managers," which reviews a recent release from LiquidityDirect; "ICD'​s Tory Hazard on Portals, Products & Tradeweb Buyout," which interview the Head of ICD Portal; and, "Stablecoin, Tokenization All Over Q2'​25 Earnings Calls," which quotes from the latest earnings calls. We also sent out our MFI XLS spreadsheet Thursday a.​m., and we'​ve updated our Money Fund Wisdom database with 7/​31/​25 data. Our August Money Fund Portfolio Holdings are scheduled to ship on Monday, August 11, and our August Bond Fund Intelligence is scheduled to go out on Thursday, August 14.

MFI'​s "BNY Portal" article says, "​A press release titled, 'BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution' explains, 'The Bank of New York Mellon Corporation ('​BNY') (​BK) ... and the Goldman Sachs Group, Inc. (​GS) ... announced a collaborative initiative by which BNY will employ blockchain technology developed by Goldman Sachs to maintain a record of customers' ownership of select Money Market Funds (​MMFs), in a significant step towards enhancing the utility and transferability of existing MMF shares. This combined solution marks the first time in the U.​S. that fund managers have enabled subscription for shares of their MMFs via BNY'​s LiquidityDirect and Digital Asset platforms, the corresponding value of which will be represented through mirrored record tokenization utilizing GS DAP. BlackRock, BNY Investments Dreyfus, Federated Hermes, Fidelity Investments, and Goldman Sachs Asset Management will participate in the initial launch.'"

It continues, "Laide Majiyagbe, Global Head of Liquidity, Financing and Collateral at BNY, comments, '​As the financial system transitions toward a more digital, real-​time architecture, BNY is committed to enabling scalable and secure solutions that shape the future of finance. Mirrored tokenization of MMF shares is a first step in this transition, and we are proud to be at the forefront of this first-​of-​its-​kind initiative. Our collaboration with Goldman Sachs Digital Assets highlights our role as a trusted bridge between traditional finance and emerging technologies -- empowering clients to navigate this transformation with confidence.'"

We write in our "ICD profile, "This month, MFI interviews Managing Director & Head of ICD Tory Hazard, a year after the company'​s buyout by Tradeweb. We discuss the portal marketplace, corporate investor issues and the latest technology initiatives with one of the industry'​s biggest online money fund trading portals. Our Q&​A follows."

It states, "MFI: Tell us a little about your history. Hazard: ICD was founded in 2003 as the first independent investment platform focused solely on corporate treasury. From the beginning, the goal was to give treasury teams better access, transparency, and control over their short-​term investments. I joined ICD in 2009, to help grow and scale the business. At the time, the idea of a digital platform for institutional money funds was still gaining traction, and it'​s been exciting to be part of shaping that evolution."

Our "Earnings Call" piece says, "Stablecoin and tokenization questions and comments littered bank and financial institutions' second quarter earnings calls over the past 3 weeks. We can'​t fit them all here, but we try and excerpt from the big ones. We also include some broad comments on cash."

The article continues, "BlackRock Chairman & CEO Larry Fink says, 'A lot of firms got out of the cash business after the financial crisis when fee waivers were in place during a sustained period of low rates. But we recognize a simple thing. Every client needs to hold cash. Cash management has been the first entry point for many of our clients, who have gone on to build large mandates with BlackRock. Our cash AUM is nearly $​1 trillion.'"

MFI also includes the News brief, "Assets Climb to Another Record in July. Our MFI Daily asset series broke the $​7.​5 trillion barrier for the first time on August 4. (​Assets rose again on 8/​5 to a record $​7.​507 trillion.) Our MFI XLS monthly series also rose to a record $​7.​488 trillion in July. ICI'​s smaller weekly series shows assets at a near record $​7.​076 trillion as of last week."

Another News brief, "J.​P. Morgan, Simplify File for Money Market ETFs," says, "​An article from 'The Daily Upside,' titled, '`​JPMorgan Files to Launch Money Market ETF,' tells us, '​The bank applied last month for SEC approval of the actively managed JPMorgan 100% US Treasury Securities Money Market ETF.... The move, along with recent money market ETF launches by Schwab and BlackRock, shows how issuers are capitalizing on investors' appetite for lower-​risk options ... and ETF hype. A separate press release 'Introducing the Simplify Government Money Market ETF (​SBIL),' tells us, 'Simplify Asset Management... announced a further expansion of its lineup of income-​focused ETFs with the launch of the Simplify Government Money Market ETF (​SBIL).'"

A third News brief titled, "Reuters Says Slew of T-​Bills Coming, tells us, 'A slew of T-​bills coming? Money market funds say '​bring '​em on'.' The article explains, 'More than $​1 trillion in U.​S. short-​term bills are expected to flood the market over the next 1-​1/​2 years following the increase in the debt ceiling, as the Treasury replenishes its diminished cash balance.... There is, however, no shortage of buyers, with money market funds leading the way. Armed with a record $​7.​4 trillion in assets as of July 1, money funds, which invest in short-​term, low-​risk securities such as Treasury bills and repurchase agreements, or repos, are ready to take on more supply.'"

A sidebar, "EFAMA'​s European Fact Book," says, "EFAMA, the European Fund and Asset Management Association, recently published its annual 'Fact Book,' which contains a section on 'Money Market Fund UCITS,' explains, 'Net assets of money market funds (​MMFs) ended the year above EUR 2 tn. In 2024, net sales rose to an absolute record (​EUR 226 bn), beating the previous record of pandemic year 2020 (​EUR 215 bn). The surge was largely driven by an inverted yield curve, which persisted for much of 2024.... Additionally, these strong inflows suggest that some investors opted for MMFs as a cash alternative, maintaining a wait-​and-​see approach to weather geopolitical uncertainties."

Our August MFI XLS, with July 31 data, shows total assets rose $​69.​0 billion to a record high $​7.​488 trillion, after increasing $​10.​1 billion in June, jumping $​90.​3 billion in May, but decreasing $​26.​6 billion in April and $​4.​6 billion in March. Assets increased $​90.​4 billion in February, $​47.​9 billion in January and $​113.​0 billion in December. Assets jumped $​196.​1 billion in November, $​89.​9 billion in October, $​155.​2 billion in September and $​105.​6 billion last August.

Our broad Crane Money Fund Average 7-​Day Yield was up 1 bp at 4.​02%, and our Crane 100 Money Fund Index (​the 100 largest taxable funds) was unchanged at 4.​12% in July. On a Gross Yield Basis (​7-​Day) (​before expenses are taken out), the Crane MFA and the Crane 100 averaged 4.​39% and 4.​39%. 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 7/​31/​25 on Friday, 8/​8.) The average WAM (​weighted average maturity) for the Crane MFA was 39 days (​up 1 day) and the Crane 100 WAM was up 2 days from the previous month at 40 days. (​See our Crane Index or craneindexes.​xlsx history file for more on our averages.)

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Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (​with data as of August 1) includes Holdings information from 73 money funds (​up 18 from a week ago), or $​4.​095 trillion (​up from $​3.​526 trillion) of the $​7.​485 trillion in total money fund assets (​or 54.​7%) tracked by Crane Data. (Note: Our Weekly MFPH are e-​mail only and aren'​t available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our July 11 News, "July Money Fund Portfolio Holdings: Repo Jumps to 42%, T-​Bills Plunge.") (Note too: Money market mutual fund assets broke the $​7.​5 trillion level for the first time ever on Monday, August 4, according to our Money Fund Intelligence Daily product!)

Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $​1.​770 trillion (​up from $​1.​579 trillion two weeks ago), or 43.​2%; Repurchase Agreements (​Repo) totaling $​1.​529 trillion (​up from $​1.​297 trillion two weeks ago), or 37.​3%, and Government Agency securities totaling $​368.​4 billion (​up from $​310.​9 billion), or 9.​0%. Commercial Paper (​CP) totaled $​175.​5 billion (​up from two weeks ago at $​132.​7 billion), or 4.​3%. Certificates of Deposit (​CDs) totaled $​105.​2 billion (​up from $​91.​3 billion a week ago), or 2.​6%. The Other category accounted for $​82.​9 billion or 2.​0%, while VRDNs accounted for $​64.​3 billion, or 1.​6%.

The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $​1.​770 trillion (​43.​2% of total holdings), Fixed Income Clearing Corp with $​567.​3B (​13.​9%), the Federal Home Loan Bank with $​228.​9 billion (​5.​6%), JP Morgan with $​125.​6B (​3.​1%), BNP Paribas with $​99.​9B (​2.​4%), Federal Farm Credit Bank with $​94.​5B (​2.​3%), Citi with $​92.​3B (​2.​3%), Wells Fargo with $​79.​5B (​1.​9%), RBC with $​77.​6B (​1.​9%) and Bank of America with $​59.​4B (​1.​4%).

The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($​304.​3B), JPMorgan 100% US Treas MMkt ($​257.​7B), Fidelity Inv MM: Govt Port ($​249.​1B), Goldman Sachs FS Govt ($​238.​8B), BlackRock Lq FedFund ($​176.​4B), Federated Hermes Govt ObI ($​168.​6B), Morgan Stanley Inst Liq Govt ($​164.​6B), Fidelity Inv MM: MM Port ($​160.​7B), State Street Inst US Govt ($​160.​5B) and BlackRock Lq Treas Tr ($​153.​0B). (​Let us know if you'​d like to see our latest domestic U.​S. and/​or "​offshore" Weekly Portfolio Holdings collection and summary.)

In other news, Moody'​s Ratings recently updated its "Default and Recovery Rates of Corporate Commercial Paper Issuers, 1972-​2024." They explain, "This report updates our 2017 paper on default and rating transitions of corporate commercial paper (​CP) issuers since 1972. Briefly, this study finds the following: Since the COVID-​19 pandemic, the CP market has slightly increased in terms of total volume. Total CP outstanding was $​1.​2 trillion at year-​end 2024, up from $​977 billion in 2017. Both the asset-​backed and financial-​sector CP markets increased after the US Federal Reserve announced the Commercial Paper Funding Facility (​CPFF) in March 2020 to support market functioning and provide a liquidity backstop."

It also finds, "​The credit quality of corporate CP issuers has improved since our 2017 report....; Average default rates have been low from 1972 through 2024. Over a 180-​day horizon, P-​1 rated issuers historically had a 0.​02% probability of default.... From 1972 through 2024, 126 CP issuers defaulted on about $​26.​5 billion of rated and unrated CP; and, Our data indicate that an '​orderly exit' mechanism operates in the CP market."

The "Introduction states, "As an important and flexible source of short-​term financing, CP enables large, creditworthy corporations to raise funds at low cost. CP offers an interest rate slightly higher than Treasury bills of the same maturity. The credit quality of CP issuers is generally very high, and they usually refinance maturing CP by issuing new CP. The need to constantly roll over short-​term debt makes issuers vulnerable to investors' willingness to purchase new debt. While the CP market is generally stable, it has had a few sudden and severe disruptions, such as during the 2008 global financial crisis."

Moody'​s writes, "This report documents the rating transitions and default and recovery rates of corporate CP issuers from 1972 through 2024. The report'​s first section offers an overview of the CP market, which is followed by a discussion of CP rating distribution and transitions. The final section examines the default and recovery experience of CP markets worldwide."

A "CP Market Overview," tells us, "Pandemic fears initially triggered a bout of severe financial market turmoil ..., but the Federal Reserve intervened with timely and unprecedented measures to ensure financial market liquidity and limit economic damage. It relaunched the Money Market Mutual Fund Liquidity Facility (​MMLF) that was used during the global financial crisis to help money market funds meet redemption demands from households and other investors. To support the CP market, the Fed also reinstated the Commercial Paper Funding Facility (​CPFF) used in past crises to lend directly to companies by buying CP. These facilities and other measures the Fed deployed helped restore financial market conditions despite their limited usage. As a result, credit spreads quickly narrowed from panic levels and have remained well-​contained since."

The update says, "A closer look at the CP market reveals divergent paths for corporate and asset-​backed CP (​ABCP). Corporate CP mildly recovered after the 2008 financial crisis, with the total outstanding volume rising to $​804 billion at the end of 2024 from $​687 billion in 2017. In contrast, the ABCP market has persistently declined since the third quarter of 2007, when the residential mortgage-​backed securities and asset-​backed securities markets began to unravel after the collapse of two Bear Stearns hedge funds and the suspension of three funds by BNP Paribas.... By the end of June 2011, ABCP outstanding had declined to $​413 billion from a peak of $​1.​2 trillion in 2007. By year-​end 2024, the market had declined to $​348 billion. Its persistent decline reflects a tougher regulatory environment and banks' reduced need for off-​balance-​sheet funding."

Moody'​s comments, "Increased nonfinancial corporate CP issuance largely drove the corporate CP market recovery. Nonfinancial sector CP outstanding climbed steadily to a peak of $​328 billion in mid-​2018 from a 10-​year low of $​103 billion in December 2009. However, it dropped by almost half in late 2020 because of pandemic-​related uncertainty. Following monetary policies to stimulate the market, nonfinancial CP gradually recovered to pre-​pandemic levels amid a global economic recovery. Financial CP was less affected by the pandemic ... and has trended higher since 2017, peaking at $​736 billion in May 2021."

They add, "The spread between one-​month AA nonfinancial CP and A2 nonfinancial CP had a small spike during the start of the pandemic. However, it quickly fell from panic levels and has since remained well-​contained because of the MMLF and CPFF, and other measures the Fed deployed.... The Fed'​s interventions restored the financial market conditions despite their limited usage. Since 2021, the CP spread between the two sectors, financial and nonfinancial AA, has remained below 20 basis points until the end of 2024 (​bp)."

Finally, they say, "Default risk decreased after the global financial crisis," writing, "When a CP issuer'​s fundamental credit quality deteriorates, it is typically forced to exit the market via an '​orderly exit' mechanism when it cannot roll over maturing CP. The mechanism generally lowers default risk in the CP market compared with the long-​term debt market. Since 1972, a total of 126 rated CP issuers either defaulted on a scheduled CP payment or filed for bankruptcy within five years of holding a CP rating. Of the 126, 78 (​or 62%) exited the CP market before they defaulted.... Our long-​term debt default research indicates that senior unsecured bond investors can expect to recover about 38% of the principal on a defaulted bond, but many CP investors have a much better recovery experience. Most CP holders received full payment of principal ... because many CP defaulters held investment-​grade long-​term ratings. Moreover, CP defaults are driven by liquidity shocks or other highly situation-​specific factors that do not necessarily affect recoveries."

​

The SEC published its latest quarterly "Private Funds Statistics" report recently, which summarizes Form PF reporting and includes some data on "Liquidity Funds," or pools which are similar to but not money market funds. The publication shows overall Liquidity fund assets were lower in the latest reported quarter (​Q4'​24) at $​358 billion (​down from $​369 billion in Q3'​24 but up from $​353 billion in Q4'​23). We also again briefly review the SEC'​s "Amendments to Form PF Reporting Requirements for Large Liquidity Fund Advisers" which went into effect last year, below. (Note: Register soon for our European Money Fund Symposium show, which will be held in just a month-​and-​a-​half, September 22-​23, 2025 in Dublin, Ireland.!)

The SEC'​s "Introduction" tells us, "This report provides a summary of recent private fund industry statistics and trends, reflecting data collected through Form PF and Form ADV filings received through July 11, 2025, for the reporting periods from Fourth Calendar Quarter 2022 through Fourth Calendar Quarter 2024... Form PF information provided in this report are anonymized, and are aggregated, rounded, and/​or masked to avoid potential disclosure of proprietary information of individual Form PF filers." (Note: Crane Data believes the largest portion of these liquidity fund assets are securities lending reinvestment pools.)

The tables in the SEC'​s "Private Funds Statistics: Fourth Calendar Quarter 2024," with the most recent data available, show 74 Liquidity Funds (​most of which are "Section 3 Liquidity Funds," which are Liquidity Funds from advisers with over $​1 billion total in cash), down 3 from last quarter and up 1 from a year ago. (​There are 51 Section 3 Liquidity Funds out of the 74 Liquidity Funds.) The SEC receives Form PF reports from 34 Liquidity Fund advisers (​22 of which are Section 3 Liquidity Fund advisers), down 5 from last quarter and down 4 from a year ago.

The SEC'​s table on "​Aggregate Private Fund Net Asset Value" shows total Liquidity Fund assets at $​358 billion, down $​11 billion from Q3'​24 and up $​5 billion from a year ago (​Q4'​23). Of this total, $​357 billion is in Section 3 (​large manager) Liquidity Funds. The SEC'​s table on "​Aggregate Private Fund Gross Asset Value" shows total Liquidity Fund assets at $​369 billion, down $​12 billion from Q3'​24 and up $​7 billion from a year ago (​Q4'​23). Of this total, $​367 billion in is Section 3 (​large manager) Liquidity Funds.

A table on "Beneficial Ownership for Section 3 Liquidity Funds" shows $​68 billion is held by Other (​19.​0%), $​99 billion is held by Unknown Non-​U.​S. Investors (​27.​7%), $​56 billion is held by Private Funds (​15.​6%), $​11 billion is held by Insurance Companies (​3.​1%) and $​3 billion is held by Non-​Profits (​0.​8%).

The tables also show that 62.​4% of Section 3 Liquidity Funds have a liquidation period of one day, $​339 billion of these funds may suspend redemptions, and $​307 billion of these funds may have gates. WAMs average a short 28.​5 days (​44.​6 days when weighted by assets), WALs are 47.​2 days (​67.​8 days when asset-​weighted), and 7-​Day Gross Yields average 4.​1% (​4.​5% asset-​weighted). Daily Liquid Assets average about 49.​7% (​45.​7% asset-​weighted) while Weekly Liquid Assets average about 60.​0% (​60.​6% asset-​weighted).

As we'​ve mentioned before, in July 2023, when the SEC'​s Money Market Fund Reforms were passed, these also included "​Amendments to Form PF Reporting Requirements for Large Liquidity Fund Advisers." The release explains, "Separately, the amendments will also modify certain reporting forms that are applicable to money market funds and large private liquidity funds advisers."

The "Fact Sheet" explains, "In addition, the Commission adopted amendments to Form PF, the confidential reporting form for certain SEC-​registered investment advisers to private funds, to require additional information regarding the liquidity funds they advise that is generally aligned with the amended reporting for money market funds. These amendments were proposed by the Commission in January 2022."

The full final rules tell us, "The Commission is also amending Form PF, the confidential reporting form for certain SEC-​registered investment advisers to private funds to require additional information regarding the liquidity funds they advise. Liquidity funds are private funds that seek to maintain a stable NAV (​or minimize fluctuations in their NAVs) and thus can resemble money market funds. The amendments to section 3 of Form PF will provide a more complete picture of the short-​term financing markets in which liquidity funds invest and enhance the Commission'​s and the Financial Stability Oversight Council'​s ('​FSOC') ability to assess short-​term financing markets and facilitate our oversight of those markets and their participants. This, in turn, is designed to enhance investor protection efforts and systemic risk assessment. `​We have consulted with FSOC to gain input on these amendments to help ensure that Form PF continues to provide FSOC with information it can use to assess systemic risk."

It adds, "In a January 2022 release proposing amendments to Form PF, the Commission proposed changes to section 3 of Form PF that were intended to require large liquidity fund advisers to report substantially the same information that the Commission had proposed money market funds to report on Form N-​MFP. The proposed amendments to section 3 of Form PF included requirements for additional and more granular information regarding large liquidity fund operational information and assets, portfolio holdings, financing, and investor information as well as a new item concerning the disposition of portfolio securities. Consistent with the final amendments to Form N-​MFP, we are adopting largely as proposed the amendments to section 3 of Form PF, with some modifications to better tailor the reporting to private liquidity funds and remain consistent with the final requirements for money market funds under amended Form N-​MFP."

​

Federated Hermes reported Q2'​25 earnings and hosted its Q2'​25 earnings call on Friday. On the call, President & CEO J. Christopher Donahue, comments, "Moving on to money markets, we reached another record high at the end of Q2 for money market fund assets, which increased by $​3.​1 billion to $​468 billion. These assets moved higher in the second quarter despite seasonal factors that often result in lower assets. Money market separate accounts decreased by $​5.​9 billion, reflecting usual seasonal patterns. 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."

He continues, "We are actively participating in the development of tokenized money market funds and digital asset infrastructure and continue to rigorously explore opportunities ranging from tokenized share classes to offering fully digitized assets. Over the past several years, we have engaged with a broad array of innovators and well-​regarded financial institutions to identify and evaluate opportunities in the digital assets arena, accompanying -- going along with a significant amount of knowledge gained and experience along the way. We are subadvisor for the Superstate Short Duration U.​S. Government Securities Fund, a private tokenized fund that has assets of about $​425 million."

Donahue says, "It was also recently announced that Federated Hermes will participate in the launch of a collaborative initiative between Bank of New York and Goldman Sachs that will use blockchain technology to maintain a record of their customers' ownership of select money market funds. This is a significant step towards enhancing the utility and transferability of the existing money market fund shares. Our participation highlights our commitment to the digital asset space where we expect ongoing innovation and growth."

He tells the call, "Our estimate of money market mutual fund market share, including sub-​advised funds was about 7.​11% at the end of the second quarter, up slightly from about 7.​10% at the end of the first quarter. Now looking at recent asset totals as of the last few days, managed assets were approximately $​854 billion, including $​642 billion in money markets, $​91 billion in equities, $​98 billion in fixed income, $​20 billion in alternative private markets, $​3 billion in multi-​asset. Money market mutual fund assets were $​476 billion."

During the Q&​A Patrick Davitt from Autonomous Research, asks, "On the back of your stablecoin tokenization comments, I think it would be helpful maybe if you could update us on your broader thoughts around the extent to which you think these products could disintermediate the traditional money fund business? Or do you see it more as incremental to that traditional money fund cash exposure?"

Donahue answers, "Baseline, we would see it as incremental. New customers, new things. There'​s not an avalanche of use [​cases for] these things right now. And don'​t forget, the basic thing ... people with cash want ... daily liquidity at par. They'​re willing to go with a stablecoin that doesn'​t pay a yield, but then they also would like a respectable daily yield."

He states, "​We think that the Goldman-​Bank of New York methodology where Goldman creates a platform, Bank of New York is the custody and transfer agent and the money fund sits there, just like it always sat there as a money fund, and yet someone else is taking care of the tokenization. So from the customer standpoint, it is, in fact, a tokenized money fund. But from the money fund operator standpoint, it'​s operating a regular 2a-​7 money fund in order to provide daily liquidity at par. So this is a very sound strategy. I'​m not saying it'​s the only one that will go into the future, but overall, we think that'​s a very good one. One of the reasons that people are getting excited about this is because you can get 7/​24 activity trade anytime, but you still have to work out some of the mechanics of who gets the dividend."

Donahue adds, "The way our program will work with BNY and Goldman right now is whoever owns the token at the end of the day is going to get the dividend. And this is not as much a tokenized money fund as others have to full tokenized money funds. So our overall view is that you have to play in this space. And we are talking to people, I got a list of them, and ... many of them [​include] European players where we'​re dealing with all the ideas of innovation. I can'​t go through all of them with you. The one with the Bank of New York and Goldman, obviously, has been made public, as have Superstate."

Money Market CIO Deborah Cunningham comments, "The only thing I'​d add is, right now, we think this is the tip of the iceberg, Patrick. This is, for our current products that are on this platform, a different way to distribute. So we distribute through various types of intermediaries, through states, through insurers, through broker-​dealers, through banks. We distribute directly. This is another way of distributing our product, and in the process, turning it into a ledger product that has better transferability than a typical money market fund share does."

She explains, "So we think it'​s a very clever and new way to be able to distribute product. And as Chris mentioned, there'​s lots of innovation that we think can happen that provide additional bells and whistles to why this is a product that will take over, to some degree, the future. But that'​s not what is in existence today. What is in existence today is a traditional money fund being distributed to a different group of clients, particularly from a collateralization standpoint. So ... stablecoins, you mentioned, they need to be backed by something. They need to be backed by Treasury bills or money funds containing those Treasury bills. That'​s what the GENIUS Act is all about. Money funds will provide that collateral, and we will provide it on chain so that the ease of use is basically seamless. But lots of innovation to come as it exists today, distribution changes that are beneficial."

Asked about money funds benefiting from falling rates, Cunningham says, "​It'​s been alive and well, Patrick, ... from the second half of 2024 and all of 2025 year-​to-​date, so for the last year. But it'​s not really started in earnest because what we saw in Fed rate cuts at the end of 2024 didn'​t materialize into anything yet in 2025. So it'​s one of those '​wait till you see the whites of their eyes' sort of thing, I think, as far as volume goes. But we were basically flat on a money fund asset basis for the second quarter.... May and June are more confirmation of what we'​ve been saying on the institutional side from a rotation into money funds and out of direct securities, whereas April was more based on what the situation was happening from an economic and a fiscal standpoint."

Asked about stablecoins and T-​bills, Cunningham responds, "The current size of the stablecoin market is about $​250 billion, very concentrated in 2 coins, basically. And then the assets that are backing those 2 coins. Tether and Circle are basically in Treasury securities.... What happens with the GENIUS Act is there'​s now more definition as to what needs to be backing a stablecoin, and it'​s very short Treasuries or Treasury-​backed repo. [​Whether it'​s] ultimately $​1 trillion, $​2 trillion, it'​s -- put your finger in the air. I'​m not sure where the number goes, but it'​s somewhere ... drastically above where it is in the $​250 billion market today."

Donahue adds, "One of the other features of the GENIUS Act was to not allow stablecoins to pay interest or return. So the people who ought to be concerned about the $​2 trillion going into stablecoins are the ones who have deposit accounts with little or no interest, and how does that dynamic exactly work? ... But it'​s important to note that the stablecoin can'​t pay a yield."

Finally, on the potential size of the new sectors, he says, "It is very, very difficult to say what that kind of number would be. We haven'​t done any numbers on that. `​Both Debbie and I believe it'​s incremental to the business. But as with any of these things, especially when you'​re doing blockchain, you'​ve got a lot of a lot of people on there first in order to have it grow. It'​s a little bit of a chicken/​egg thing. So everybody is working on it now, and there'​s a lot of excitement and a lot of articles and all of that, but the assets are not yet there. We'​re ready for when it goes, but it'​s just hard for us to say."

​

The Investment Company Institute released its latest weekly "Money Market Fund Assets" report Thursday and its latest monthly "Trends in Mutual Fund Investing - June 2025" and "Month-​End Portfolio Holdings of Taxable Money Funds" on Wednesday. The former shows money fund assets rising $​1.​5 billion to a near-​record $​7.​076 trillion, after rising $​9.​2 billion the week prior and falling $​6.​8 billion two weeks prior. Assets rose $​55.​6 billion to a record $​7.​078 trillion four weeks ago (​the week ended July 2). MMF assets are up by $​942 billion, or 15.​4%, over the past 52 weeks (​through 7/​30/​25), with Institutional MMFs up $​520 billion, or 14.​3% and Retail MMFs up $​422 billion, or 16.​9%. Year-​to-​date, MMF assets are up by $​226 billion, or 3.​3%, with Institutional MMFs up $​47 billion, or 1.​1% and Retail MMFs up $​179 billion, or 6.​5%.

ICI'​s weekly release says, "Total money market fund assets increased by $​1.​52 billion to $​7.​08 trillion for the week ended Wednesday, July 30, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $​1.​45 billion and prime funds decreased by $​906 million. Tax-​exempt money market funds increased by $​973 million." ICI'​s stats show Institutional MMFs increasing $​1.​7 billion and Retail MMFs decreasing $​0.​2 billion in the latest week. Total Government MMF assets, including Treasury funds, were $​5.​758 trillion (​81.​4% of all money funds), while Total Prime MMFs were $​1.​181 trillion (​16.​7%). Tax Exempt MMFs totaled $​136.​8 billion (​1.​9%).

It explains, "Assets of retail money market funds decreased by $​193 million to $​2.​91 trillion. Among retail funds, government money market fund assets decreased by $​1.​69 billion to $​1.​83 trillion, prime money market fund assets increased by $​755 million to $​959.​15 billion, and tax-​exempt fund assets increased by $​745 million to $​124.​01 billion." Retail assets account for 41.​2% of the total, and Government Retail assets make up 62.​8% of all Retail MMFs.

They add, "Assets of institutional money market funds increased by $​1.​71 billion to $​4.​16 trillion. Among institutional funds, government money market fund assets increased by $​3.​14 billion to $​3.​93 trillion, prime money market fund assets decreased by $​1.​66 billion to $​222.​02 billion, and tax-​exempt fund assets increased by $​228 million to $​12.​82 billion." Institutional assets accounted for 58.​8% of all MMF assets, with Government Institutional assets making up 94.​4% of all institutional MMF totals.

According to Crane Data'​s separate Money Fund Intelligence Daily series, money fund assets have increased by $​61.​6 billion in July (​through 7/​30/​25) to $​7.​468 trillion. Assets hit a record high of $​7.​472 trillion on July 29 but have since inched lower. Assets increased by $​6.​7 billion in June and jumped by $​100.​9 billion in May. They 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 trillion in November, $​97.​5 billion in October, $​149.​8 billion in September and $​109.​7 billion in August. Note that ICI'​s asset totals don'​t include a number of funds tracked by the SEC and Crane Data, so they'​re almost $​400 billion lower than Crane'​s asset series.

ICI'​s monthly Trends shows money fund totals increasing $​29.​3 billion, or 0.​4%, in June to $​7.​025 trillion. MMFs have increased by $​933.​0 billion, or 15.​3%, over the past 12 months (​through 6/​30/​25). Money funds' June asset increase follows an increase of $​84.​7 billion in May, a decrease of $​63.​8 billion in April, $​10.​9 billion in March, an increase of $​99.​0 billion in February, $​31.​9 billion in January and $​139.​3 billion in December. They rose $​171.​5 billion in November, $​117.​4 billion in October and $​158.​6 billion in September. Bond fund assets increased $​85.​8 billion to $​5.​223 trillion, and bond ETF assets increased to $​1.​98 trillion in June 2025.

The monthly release states, "The combined assets of the nation’​s mutual funds increased by $​805.​92 billion, or 2.​8 percent, to $​29.​72 trillion in June, according to the Investment Company Institute'​s official survey of the mutual fund industry. In the survey, mutual fund companies report actual assets, sales, and redemptions to ICI.... Bond funds had an inflow of $​14.​20 billion in June, compared with an inflow of $​21.​19 billion in May.... Money market funds had an inflow of $​14.​96 billion in June, compared with an inflow of $​69.​26 billion in May. In June funds offered primarily to institutions had an outflow of $​7.​29 billion and funds offered primarily to individuals had an inflow of $​22.​25 billion."

The Institute'​s latest statistics show that Taxable MMFs were higher while Tax Exempt MMFs were lower from last month. Taxable MMFs increased by $​31.​9 billion in June to $​6.​887 trillion. Tax-​Exempt MMFs decreased $​2.​6 billion to $​138.​2 billion. Taxable MMF assets increased year-​over-​year by $​924.​1 billion (​15.​5%), and Tax-​Exempt funds rose by $​8.​9 billion over the past year (​6.​9%). Bond fund assets increased by $​85.​8 billion (​after increasing by $​10.​9 billion in May) to $​5.​223 trillion; they'​ve increased by $​352.​9 billion (​7.​2%) over the past year.

Money funds represent 23.​6% of all mutual fund assets (​down 0.​6% from the previous month), while bond funds account for 17.​6%, according to ICI. The total number of money market funds was 262, down 1 from the prior month and down from 276 a year ago. Taxable money funds numbered 221 funds, and tax-​exempt money funds numbered 41 funds.

ICI'​s "Month-​End Portfolio Holdings" confirms a jump in Repo and a drop in Treasuries last month. Repurchase Agreements once again became the largest composition segment three months prior, this past month increasing $​187.​2 billion, or 6.​9%, to $​2.​900 trillion, or 42.​1% of holdings. Repo holdings have increased $​468.​4 billion, or 19.​3%, over the past year. (​See our July 11 News, "July Money Fund Portfolio Holdings: Repo Jumps to 42%, T-​Bills Plunge.”)

Treasury holdings in Taxable money funds fell down to the second largest composition segment three months prior; this past month they decreased $​56.​0 billion, or -​2.​2%, to $​2.​482 trillion, or 36.​0% of holdings. Treasury securities have increased by $​206.​3 billion, or 9.​1%, over the past 12 months. U.​S. Government Agency securities were the third largest segment; they increased $​4.​4 billion, or 0.​5%, to $​912.​0 billion, or 13.​2% of holdings. Agency holdings have increased by $​224.​1 billion, or 32.​6%, over the past 12 months.

Certificates of Deposit (​CDs) were in fourth place, down $​18.​8 billion, or -​5.​9%, to $​296.​5 billion (​4.​3% of assets). CDs decreased $​2.​3 billion, or -​0.​8%, over one year. Commercial Paper was in fifth place; they decreased by $​7.​8 billion, or -​2.​6%, to $​292.​4 billion (​4.​2% of assets). CP held by money funds rose by $​39.​4 billion, or 15.​6%, over 12 months. Other holdings decreased to $​20.​8 billion (​0.​3% of assets), while Notes (​including Corporate and Bank) increased to $​38.​0 billion (​0.​6% of assets).

The Number of Accounts Outstanding in ICI'​s series for taxable money funds increased to 79.​563 million, while the Number of Funds was down 1 at 221. Over the past 12 months, the number of accounts rose by 9.​826 million and the number of funds decreased by 10. The Average Maturity of Portfolios was 36 days, down 2 days from May. Over the past 12 months, WAMs of Taxable money are up 2 days.

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