News Archives: August, 2026
ICI's latest monthly "Trends in Mutual Fund Investing - July 2026" and "Month-End Portfolio Holdings of Taxable Money Funds" show money fund totals decreasing $43.7 billion, or -0.6%, in July to $7.857 trillion. MMFs increased by $763.9 billion, or 10.8%, over the past 12 months (through 7/31/26). Money funds' July asset decrease follows an increase of $75.9 billion in June, $157.2 billion in May, a decrease of $100.5 billion in April and $16.9 billion in March, and an increase of $59.9 billion in February. Bond fund assets decreased $45.6 billion to $5.682 trillion, and bond ETF assets increased $15.3 billion to $2.568 trillion in July 2026.
The monthly release states, "The combined assets of the nation's mutual funds decreased by $374.68 billion, or 1.1 percent, to $32.85 trillion in July, 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 $14.85 billion in July, compared with an inflow of $22.81 billion in June.... Money market funds had an outflow of $57.36 billion in July, compared with an inflow of $62.55 billion in June. In July, funds offered primarily to institutions had an outflow of $48.47 billion and funds offered primarily to individuals had an outflow of $8.89 billion."
The Institute's latest statistics show that Taxable MMFs were lower while Tax Exempt MMFs were higher from last month. Taxable MMFs decreased by $44.6 billion in July to $7.707 trillion. Tax-Exempt MMFs increased $0.9 billion to $149.7 billion. Taxable MMF assets increased year-over-year by $750.9 billion (10.8%), and Tax-Exempt funds rose by $13.0 billion over the past year (9.5%). Bond fund assets decreased by $45.6 billion (after increasing by $39.9 billion in June) to $5.682 trillion; they've increased by $427.4 billion (8.1%) over the past year.
Money funds represent 23.9% of all mutual fund assets (up 0.1% from the previous month), while bond funds account for 17.3%, according to ICI. The total number of money market funds was 268, unchanged from the prior month and up from 260 a year ago. Taxable money funds numbered 229 funds, and tax-exempt money funds numbered 39 funds.
ICI's "Portfolio Holdings" confirms a drop in Repo and an increase in Treasuries last month. Treasury holdings remain the largest composition segment. In July, they increased $170.8 billion, or 5.6%, to $3.233 trillion, or 42.0% of holdings. Treasury securities have increased by $651.5 billion, or 25.2%, over the past 12 months. (See our August 12 News, "August Portfolio Holdings: Assets Flat; Treasuries Jump, Repo Plunges.")
Repurchase Agreements, the second largest composition segment, decreased $123.2 billion, or -4.3%, to $2.767 trillion, or 35.9% of holdings. Repo holdings have decreased $36.3 billion, or -1.3%, over the past year. U.S. Government Agency securities were the third largest segment; they increased $35 million, or 0.0%, to $1.107 trillion, or 14.4% of holdings. Agency holdings have increased by $207.4 billion, or 23.1%, over the past 12 months.
Certificates of Deposit (CDs) were in fourth place, down $9.1 billion, or -3.1%, to $285.7 billion (3.7% of assets). CDs decreased $30.6 billion, or -9.7%, over one year. Commercial Paper holdings were in fifth place; CP holdings decreased by $6.9 billion, or -2.4%, to $283.9 billion (3.7% of assets). CP held by money funds fell by $18.4 billion, or -6.1%, over 12 months. Other holdings increased to $25.1 billion (0.3% of assets), while Notes (including Corporate and Bank) decreased to $38.6 billion (0.5% of assets).
The Number of Accounts Outstanding in ICI's series for taxable money funds decreased to 89.495 million, while the Number of Funds was unchanged at 229. Over the past 12 months, the number of accounts rose by 8.733 million and the number of funds increased by 8. The Average Maturity of Portfolios was 40 days, unchanged from June. Over the past 12 months, WAMs of Taxable money funds are up 1 day.
In other news, Federal Reserve Chairman Kevin Warsh gave a speech titled, "In Our Time," which tells us, "[T]here should be no misunderstanding: The Fed's price-stability objective of 2 percent, as measured by the personal consumption expenditures (PCE) price index, is a firm, fixed target. Let's be equally clear about another aspect of the objective: Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed's job to deliver stable prices.... [S]hort-term interest rates are the predominant tool to achieve the dual mandate. Unconventional policies to spur economic activity may suit genuine crises but should otherwise be used sparingly, if at all."
He says, "[M]oney matters. It's not fashionable these days, but my view is that money has something important to do with monetary policy. We should pay attention to money created by the central bank and money that comes from the banking and financial systems. It's true that financial innovations and other factors alter the mechanics that link the monetary base, the velocity of money, and the broader economy. But that is scarcely a reason to ignore the ultimate effects of money on financial conditions and prices."
Warsh adds, "Finally, a quieter Fed, more purposeful in its communications, is better able to meet its objectives. And we can be held accountable for delivering on our remit -- the only true test of our credibility. To borrow a line from General Chuck Yeager, 'At the moment of truth, there are either reasons or results.'"
The U.S. Securities and Exchange Commission published its latest monthly "Money Market Fund Statistics" summary, which shows that total money fund assets decreased by $55.6 billion in July 2026 to $8.387 trillion, after hitting a record $8.442 trillion the month prior. The SEC shows Prime MMFs decreased $23.5 billion in July to $1.370 trillion, Govt & Treasury funds decreased $33.3 billion to $6.861 trillion and Tax Exempt funds increased $1.3 billion to $155.5 billion. Taxable MMF yields were higher in July, while Tax Exempt MMF yields were lower. The SEC's Division of Investment Management summarizes monthly Form N-MFP data and includes asset totals and averages for yields, liquidity levels, WAMs, WALs, holdings, and other money market fund trends. We review their latest numbers below. (Our MFI XLS monthly shows money fund assets decreasing $57.1 billion in July 2026 to $8.298 trillion. In August month-to-date through 8/26, total money fund assets have increased by $69.3 billion to $8.358 trillion, according to Crane Data's separate, and slightly smaller, MFI Daily series.)
July's asset decrease follows an increase of $54.1 billion in June, an increase of $200.7 billion in May, a decrease of $102.3 billion in April, a decrease of $50.7 billion in March, an increase of $123.7 billion in February, $36.6 billion in January, $125.0 billion in December, $125.1 billion in November, $153.2 billion in October, $106.0 billion in September, $138.0 billion in August and $60.2 billion last July. Over the 12 months through 7/31/26, total MMF assets have increased by $853.9 billion, or 11.3%, according to the SEC's series.
The SEC's stats show that of the $8.387 trillion in assets, $1.370 trillion was in Prime funds, down $23.5 billion in July. Prime assets were up $21.5 billion in June, up $16.1 billion in May, down $26.2 billion in April, down $0.5 billion in March, up $18.2 billion in February, $22.4 billion in January, $1.2 billion in December, $3.1 billion in November, $9.1 billion in October, $6.2 billion in September, $20.2 billion in August and $22.7 billion last July. Prime funds represented 16.3% of total assets at the end of July. They've increased by $67.7 billion, or 5.2%, over the past 12 months. (Note that the SEC's series includes a number of internal money funds not tracked by ICI, though Crane Data includes most of these assets in its collections.)
Government & Treasury funds totaled $6.861 trillion, or 81.8% of assets. They decreased $33.3 billion in July, increased $31.1 billion in June, increased $183.5 billion in May, decreased $75.9 billion in April, decreased $52.0 billion in March, increased $104.5 billion in February, increased $23.1 billion in January, increased $117.3 billion in December, increased $115.4 billion in November, increased $142.1 billion in October, increased $97.8 billion in September, increased $118.1 billion in August and increased $39.0 billion last July. Govt & Treasury MMFs are up $771.8 billion over 12 months, or 12.7%. Tax Exempt Funds increased $1.3 billion to $155.5 billion, or 1.9% of all assets. The number of money funds was 293 in July, unchanged from the previous month and up 15 funds from a year earlier.
Yields for Taxable MMFs were higher while Tax Exempt MMFs were lower in July. The Weighted Average Gross 7-Day Yield for Prime Institutional Funds on July 31 was 3.83%, up 1 bp from the prior month. The Weighted Average Gross 7-Day Yield for Prime Retail MMFs was 3.84%, up 2 bps from the previous month. Gross yields were 3.73% for Government Funds, up 3 bps from last month. Gross yields for Treasury Funds were up 4 bps at 3.75%. Gross Yields for Tax Exempt Institutional MMFs were down 23 basis points to 2.58% in July. Gross Yields for Tax Exempt Retail funds were down 21 bps to 2.50%.
The Weighted Average 7-Day Net Yield for Prime Institutional MMFs was 3.73%, unchanged from the previous month and down 62 bps from 7/31/25. The Average Net Yield for Prime Retail Funds was 3.58%, up 2 bps from the previous month and down 63 bps since 7/31/25. Net yields were 3.52% for Government Funds, up 3 bps from last month. Net yields for Treasury Funds were up 4 bps from the previous month at 3.55%. Net Yields for Tax Exempt Institutional MMFs were down 23 bps from June to 2.46%. Net Yields for Tax Exempt Retail funds were down 20 bps at 2.28% in July. (Note: These averages are asset-weighted.)
WALs and WAMs were mixed in July. The average Weighted Average Life, or WAL, was 61.8 days (up 3.3 days) for Prime Institutional funds, and 52.7 days for Prime Retail funds (down 2.1 days). Government fund WALs averaged 94.3 days (up 2.1 days) while Treasury fund WALs averaged 91.0 days (down 0.8 days). Tax Exempt Institutional fund WALs were 5.5 days (up 0.7 days), and Tax Exempt Retail MMF WALs averaged 31.1 days (down 0.3 days).
The Weighted Average Maturity, or WAM, was 36.1 days (up 0.8 days from the previous month) for Prime Institutional funds, 36.8 days (down 1.3 days from the previous month) for Prime Retail funds, 36.7 days (unchanged from previous month) for Government funds, and 42.0 days (down 0.2 days from previous month) for Treasury funds. Tax Exempt Inst WAMs were up 0.7 days at 5.5 days, while Tax Exempt Retail WAMs were down 0.1 days from previous month at 30.5 days.
Total Daily Liquid Assets for Prime Institutional funds were 49.7% in July (down 2.8% from the previous month), and DLA for Prime Retail funds was 48.1% (up 0.7% from previous month) as a percent of total assets. The average DLA was 60.4% for Govt MMFs and 94.7% for Treasury MMFs. Total Weekly Liquid Assets was 66.4% (down 1.7% from the previous month) for Prime Institutional MMFs, and 62.6% (up 0.5% from the previous month) for Prime Retail funds. Average WLA was 76.3% for Govt MMFs and 99.1% for Treasury MMFs.
Note that the SEC made a number of changes to their monthly release in April 2025, so we're no longer publishing a number of tables. A press release titled, "SEC Publishes New Data and Analysis About Registered Investment Companies and Money Market Funds," states, "The Securities and Exchange Commission ... published new data and analysis in a pair of reports that provide the investing public with updated key information about registered investment companies and money market funds. 'It is important that the Commission publicly shares the information it collects in a clear and transparent way,' says Acting Chairman Mark Uyeda. 'These two reports will provide the public with key information about the approximately $41.5 trillion investors trust to funds and the approximately $7.39 trillion invested in money market funds.'"
The SEC says, "Money Market Fund Statistics is an enhanced version of the money market funds report generated by the Division of Investment Management. This report contains additional statistical analysis and enhancements, as well as certain metrics based on Form N-MFP data. The modifications to the report are designed to further facilitate the public's ability to efficiently review, digest, and use aggregate information about the money market fund industry by including summaries of more money market fund data, including information about internal affiliated funds, portfolio investments, flows, and industry concentration. The report extends the downloadable historical statistical series of data back to 2010."
Tim Husson, who leads the SEC's Division of Investment Management's Analytics Office, adds, "Forms N-MFP and N-CEN provide insights into key areas of the investment company industry. The reports reflect our continued dedication to enhance the public's use of important information about the industry."
A press release titled, "Stable Sea Expands WisdomTree Relationship With Two New Tokenized Funds for Business Cash" tells us, "Stable Sea ... announced it is expanding its strategic relationship with WisdomTree (WT) ... by adding two new tokenized funds to Stable Sea Terminal: the WisdomTree Short-Duration Income Digital Fund (WTSIX) and the WisdomTree Floating Rate Treasury Digital Fund (FLTTX). The newly added funds build upon current access to the WisdomTree Treasury Money Market Digital Fund (WTGXX) on Stable Sea Terminal that began in April 2026, giving finance teams a choice of tokenized, SEC-registered funds to manage operating cash directly inside their treasury workflow."
The release speculates, "US businesses collectively hold more than $5 trillion in cash and cash-equivalent accounts that generate minimal to no interest, even as the infrastructure to deploy that cash has matured significantly. Tokenized real-world assets (RWAs), led by U.S. Treasury and money market products, have grown from roughly $6 billion in early 2025 to more than $31 billion by mid-2026, according to industry tracker RWA.xyz, a more than fivefold increase in about 18 months. Tokenized Treasury and money market products alone now account for more than $15 billion of that total, as industry-leading asset managers, including WisdomTree, bring institutional-grade, SEC-registered products onchain."
It claims, "Despite that growth, most of the benefit has flowed to large institutions, crypto-native firms, and high-net-worth investors. Businesses that fall outside of these sectors -- those managing payroll, vendor payments, and working capital rather than a trading desk -- have largely been left out, limited not by demand but by high investment minimums, multiple account requirements, and manual back-office processes."
Tanner Taddeo, CEO and Co-Founder of Stable Sea comments, "US businesses collectively hold more than $5 trillion in cash and cash equivalent accounts that earn minimal to no interest, and most of them have no simple way to change that. `Adding WTSIX and FLTTX gives finance teams real choice -- not just a single yield-bearing option, but a ladder of tokenized funds they can match to the cash flow needs of their business. That's the same kind of cash segmentation large treasury desks have used for decades, now available to any operator inside one platform."
The release adds, "Stable Sea Terminal gives finance teams a single cash management platform where they can choose to put idle cash to work across various tokenized funds. With this expansion, eligible Terminal users may choose among three tokenized WisdomTree funds, each with different investment objectives and characteristics: WisdomTree Treasury Money Market Digital Fund (WTGXX) - An SEC-registered money market fund investing in short-term, U.S. Treasury securities, with daily dividend accrual, a 0.25% expense ratio, $1 minimum and SEC yield (7-day) of 3.46%. WisdomTree Floating Rate Treasury Digital Fund (FLTTX) - An SEC-registered fund that seeks to track an index, before expenses, of floating-rate US Treasury obligations, with a 0.05% expense ratio, $25 minimum, and SEC yield (30-day) of 3.75%. WisdomTree Short-Duration Income Digital Fund (WTSIX) - An actively managed fund seeking income consistent with preservation of capital, with a 0.40% expense ratio, $25 minimum, and SEC yield (30-day) of 4.41%."
WisdomTree's Will Peck adds, "Businesses of every size are looking for ways to put idle cash to work, and onchain yield-generation gives them access to financial products once reserved for institutional treasury desks. Bringing WTSIX and FLTTX to the Stable Sea Terminal extends that access to a new audience, in a format built for how finance teams already operate, rather than asking them to adapt to new infrastructure."
In other news, BNY recently published, "Collateral Management in an Always-on Market," which states, "Collateral management plays a foundational role in financial markets, driving core liquidity, funding, and risk management practices across the industry. In today's markets, the ability to identify, allocate, and move collateral efficiently has real financial consequences, directly influencing funding costs, balance sheet flexibility, liquidity, and an institution’s ability to act with confidence in changing market conditions."
They write, "Historically, many institutions approached collateral management through separate but connected functions: treasury managed funding strategy and liquidity needs; securities finance teams executed repo funding, managed lending activity, and sourced collateral market opportunities; operations teams managed margin, settlement, and day-to-day collateral movements; trading desks executed trading, hedging, and financing decisions; and investment teams managed portfolios within their own mandates. These groups collaborated where needed, but the operating model was generally built around distinct responsibilities, systems, and asset pools. That approach worked when markets moved more slowly and liquidity needs were more predictable. In today’s markets, where funding decisions, margin requirements, and settlement obligations can shift quickly across regions and products, and a change in one can affect the others, that approach has become more difficult to sustain."
BNY explains, "The direction of travel is clear: cash, collateral, and margin workflows are becoming faster, more global, and more interconnected. Settlement cycles are compressing, with the U.S. moving to T+1 for applicable securities transactions in 2024 and the UK and EU set to follow in 2027. As settlement windows shorten, collateral mobility will need to keep pace. Institutions will need to understand not only where assets can be financed in normal conditions, but how they can be pledged, transformed, or reallocated across private funding markets and public-sector liquidity facilities when conditions change. This interoperability can help preserve optionality, reduce trapped liquidity, and deploy collateral where it has the greatest funding value."
They comment, "Market innovation is also shifting liquidity management from an overnight orientation toward more precise intraday tools. BNY's intraday triparty repo capabilities, including its recent pilot of the first-ever GBP intraday triparty repo, demonstrate how market participants can source liquidity for specific periods, such as early morning funding needs, rather than relying on a full overnight funding window. This ability to access liquidity more precisely can help institutions manage funding costs, improve collateral efficiency, and better align available liquidity with actual obligations."
BNY's piece states, "Digital asset innovation is accelerating this shift. As adoption increases, tokenization could have a meaningful impact on collateral markets by enabling assets, cash, and eligibility rules to interact more efficiently. A practical building block in that evolution is the digitization of collateral schedules, which can help convert complex eligibility terms into more structured, usable data that supports optimization decisions. Over time, optimization may evolve toward programmable eligibility, tokenized ownership records, near-real-time settlement, automated substitutions, and more continuous liquidity management, helping connect collateral, cash, and settlement workflows across traditional and digital infrastructure. However, programmability alone is not optimization. Effective collateral management requires balancing liquidity, funding, eligibility, capital, and opportunity cost considerations across the enterprise. These continuous decisions must be connected across collateral, cash, funding, margin, and settlement workflows, spanning both traditional and digital rails."
Finally, they tell us, "Traditional custody, triparty, and collateral infrastructure will need to operate alongside digital cash, tokenized funds, and blockchain-based records as markets move closer to a 24/7 environment. In the near term, this will lead to a hybrid model which may add complexity as institutions manage collateral across both traditional and digital rails, connecting collateral, cash, and settlement activities across multiple infrastructures. Institutions that proactively evaluate their collateral frameworks, and invest in the operational, governance, and connectivity capabilities required, will be best positioned to navigate this transition."
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 Aug. 21) includes Holdings information from 67 money funds (up 12 from three weeks ago), or $4.169 trillion (up from $3.644 trillion) of the $8.348 trillion in total money fund assets (or 49.9%) 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 Aug. 12 News, "August Portfolio Holdings: Assets Flat; Treasuries Jump, Repo Plunges.")
Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.925 trillion (up from $1.685 trillion three weeks ago), or 46.2%; Repurchase Agreements (Repo) totaling $1.446 trillion (up from $1.292 trillion three weeks ago), or 34.7%, and Government Agency securities totaling $460.9 billion (up from $420.8 billion three weeks ago), or 11.1%. Commercial Paper (CP) totaled $149.3 billion (up from $120.5 billion three weeks ago), or 3.6%. Certificates of Deposit (CDs) totaled $69.8 billion (up from $49.8 billion three weeks ago), or 1.7%. The Other category accounted for $63.0 billion or 1.5%, while VRDNs accounted for $54.7 billion or 1.3%.
The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.925 trillion, Fixed Income Clearing Corp with $447.7B, the Federal Home Loan Bank with $280.6B, JP Morgan with $147.6B, Federal Farm Credit Bank with $110.0B, Citi with $106.6B, BNP Paribas with $99.3B, RBC with $94.5B, Wells Fargo with $89.6B and Credit Agricole with $52.9B.
The Ten Largest Funds tracked in our latest Weekly include: JPMorgan 100% US Trs MM ($360.4B), JPMorgan US Govt MM ($344.1B), Fidelity Inv MM: Govt Port ($280.1B), Goldman Sachs FS Govt ($273.5B), Morgan Stanley Inst Liq Govt ($209.4B), State Street Inst US Govt ($199.9B), Federated Hermes Govt ObI ($173.7B), Fidelity Inv MM: MM Port ($162.4B), Dreyfus Govt Cash Mgmt ($161.7B) and Fidelity Inv MM: Treas Only ($142.8B). (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, a press release titled, "HashKey Exchange and Franklin Templeton to Bring OnChain U.S. Government Liquidity Fund to Asia," tells us, "HashKey Holdings Limited ... announced that its licensed trading platform, HashKey Exchange ... announced a collaboration with established global asset manager Franklin Templeton to distribute its flagship tokenized money market fund, Franklin OnChain U.S. Government Liquidity Fund (BENJI), to digital asset investors in Asia."
It explains, "The collaboration will commence with the launch of the Franklin OnChain U.S. Government Liquidity Fund (BENJI) on the HashKey Exchange Earn Channel on August 24, 2026. The product will provide eligible digital asset investors with access to a fund investing primarily in U.S. government money market instruments and U.S. dollar cash assets through blockchain-enabled infrastructure."
HashKey writes, "As the digital asset ecosystem continues to evolve, market participants are increasingly seeking yield-generating instruments backed by real-world assets. This collaboration represents an important step toward bridging traditional financial markets with compliant digital asset infrastructure, supporting the broader development of on-chain capital markets."
They state, "Through this collaboration, Franklin Templeton expands the reach of its tokenized fund solutions into regulated digital asset markets across Asia. For HashKey Exchange, the partnership strengthens its Earn ecosystem by introducing regulated tokenized investment products and deepening collaboration with leading global asset managers."
The release adds, "Combining Franklin Templeton's decades of global investment expertise with HashKey Exchange's regulated digital asset infrastructure, the collaboration aims to create a compliant and scalable gateway for institutional and professional investors to access tokenized financial products from established global asset managers. Building on the launch of BENJI, both companies will continue to explore opportunities to expand access to tokenized products across markets and asset classes, while remaining committed to advancing transparent and compliant RWA solutions."
Haiyang Ru, CEO of HashKey Exchange BG, comments, "Partnering with a global asset management leader like Franklin Templeton marks a monumental milestone for HashKey Exchange and the broader Asian digital asset landscape. By bringing the Franklin OnChain U.S. Government Liquidity Fund (BENJI) onto our Earn channel, we are directly addressing the surging institutional demand for compliant, real-world asset (RWA) yield solutions. This collaboration bridges the gap between traditional finance and secure, regulated on-chain infrastructure, setting a new benchmark for transparency and capital market innovation across the region."
Franklin Templeton's Chetan Karkhanis says, "We are excited to launch our tokenized money market fund on the HashKey Exchange platform. Leveraging blockchain technology, the Fund provides investors with enhanced transparency, security, accessibility, speed, and cost efficiency. Launching on HashKey is a key step in broadening our reach, tapping into their rapidly expanding client base of digital native banking and wealth platforms alongside established institutional clients, while advancing our digital assets and innovation strategy in the region."
One year ago, we wrote, "Goldman Sachs: Summer of Stablecoin; FT: Banks Lobby to Block Interest," which cited Goldman Sachs' piece that coined the term, "Stablecoin Summer." They wrote last year, "It's been the summer of stablecoins," and asked, "Does the stablecoin summer have staying power?" At the time, the GENIUS Act had just established a federal regulatory framework for payment stablecoins, Circle had recently gone public and major financial firms were exploring their own stablecoin initiatives. (Note: Register soon for our European Money Fund Symposium show, which will be held in just under a month, Sept. 24-25, 2026 in Paris, France!)
At the time Goldman declared the last "stablecoin summer," money fund managers were already moving quickly into the stablecoin "reserves" business. On Aug. 13, 2025, we wrote, "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings," after Goldman Sachs Asset Management filed for a government money fund designed to invest "only in certain eligible reserve assets" permitted for payment stablecoin issuers under the GENIUS Act. Just a week later, our Aug. 20 story, "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle," reported that BNY would become the third manager with a money fund dedicated primarily to stablecoin reserves. Its filing said, "Shares of the fund are intended to serve as reserves backing outstanding payment stablecoins."
One year later, the answer to Goldman's question appears to be yes -- at least for the money fund industry. What was still a niche business in the summer of 2025, with one established fund and a growing collection of filings and plans, has developed into a small but identifiable stablecoin-reserve money fund category. In our Nov. 14 story, we said, "BNY Stablecoin Reserves Goes Live; ICI: Assets Eke Out Record $7.5T." BNY Investments' Stephanie Pierce commented, "Cash is the cornerstone of the digital asset ecosystem." State Street, Fidelity and other managers subsequently filed for or launched GENIUS-aligned government money funds aimed specifically at stablecoin issuers.
State Street Investment Management announced its State Street Stablecoin Reserves Money Market Fund in June, calling it a Rule 2a-7 government MMF "designed specifically for the unique needs of stablecoin issuers." SSIM President and CEO Yie-Hsin Hung commented, "A clear framework has been established for how stablecoin reserves can be invested." Anchorage Digital, an initial investor in the fund, added, "Stablecoins are quickly becoming core financial infrastructure." State Street said the fund was designed and built to comply with the GENIUS Act and named State Street Bank and Anchorage as its initial investors.
Fidelity Investments also entered the business with the Fidelity Reserves Digital Fund (FYMXX), which launched June 15. Its prospectus says fund shares are expected to be held primarily by stablecoin issuers as reserve assets backing their tokens. Fidelity also highlights a new risk for the category, explaining, "Fund assets are therefore expected to fluctuate depending on the creation of additional stablecoins or the redemption of outstanding stablecoins." The filing warns that rapid or unexpected stablecoin redemptions could in turn affect the fund's liquidity and portfolio management.
Our Aug. 5 story, "Stablecoin Reserves Recap by ignites; BlackRock Tokenizes Offshore MFs," highlights how quickly the field has filled out. Ignites wrote that traditional asset managers were rolling out a 'wave of government money market funds tailored specifically to stablecoin reserves,' including products from Morgan Stanley, State Street, BNY and Goldman Sachs. Crane Data showed State Street's stablecoin reserve fund with approximately $120 million as of late July, followed by Goldman Sachs with $104 million, BNY Dreyfus with $51 million and Morgan Stanley with $5 million. Together, the four funds held roughly $280 million.
The pipeline is broader still. Federated Hermes introduced its MMR Digital Treasury Fund Reserve Shares, BNY filed for an on-chain Dreyfus liquidity fund and Invesco filed for the Invesco Stablecoin Reserves Onchain Fund. Our July 1 Link of the Day, "Yahoo on Invesco Stablecoin Reserves," noted that Invesco had joined a growing group of traditional liquidity managers positioning money funds as stablecoin reserve infrastructure.
BlackRock pushed the stablecoin-reserve and tokenized-MMF themes closer together earlier this month. Our Aug. 4 story, "BlackRock Launches BRSRV Tokenized Money Fund; Aviva Tokenized USD," covered the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, or BRSRV, alongside an on-chain share class of the BlackRock Select Treasury Based Liquidity Fund. Jon Steel, Global Head of Product and Platform for BlackRock Cash Management, comments, "As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice." BRSRV can be used for digital-asset purposes including "stablecoin reserve management," and the investment strategies of both funds are intended to qualify as eligible reserve assets under the GENIUS Act.
Stablecoin reserve MMFs and tokenized MMFs are related, but they are not the same product. Reserve MMFs are designed to hold eligible assets on behalf of stablecoin issuers -- BNY's filing explicitly noted that its fund "does not invest in stablecoins." Tokenized MMFs instead place fund shares or ownership records on blockchain infrastructure. Increasingly, however, the two categories are converging as managers seek to make money fund shares usable for settlement, reserves and collateral.
One question from last summer remains unresolved: How much new Treasury demand will stablecoin growth actually create? Goldman's 2025 analysis argued that "Inflows from money market funds would have the smallest net impact" on safe-asset demand because government MMFs already invest overwhelmingly in Treasuries and other government securities. Money moving from MMFs into stablecoins could therefore shift the holder of the underlying safe assets without meaningfully increasing aggregate demand, though it could alter demand between Treasury bills and repo.
The Brookings Institution revisited that same question in its new paper, "Stablecoins After GENIUS: Private Money, Public Debt, and the Global Dollar," which we covered yesterday. Brookings writes, "The USD stablecoin market has grown rapidly but remains small." Total outstanding balances reached about $270 billion in June 2026, up from $24 billion in 2020. Brookings says strong stablecoin growth could substantially increase demand for Treasury bills, but stresses that the source of the growth matters: If assets migrate from MMFs into stablecoins, money funds would sell some of their Treasury holdings and dampen the net increase in demand. It estimates first-round Treasury bill demand under various stablecoin-growth scenarios could range from $400 billion to $2.3 trillion by 2030.
For all the activity, dedicated stablecoin reserve MMFs (and stablecoins) remain tiny compared with the broader money fund business. The four reserve funds highlighted by Ignites held only about $280 million combined in late July, versus more than $8 trillion across U.S. money market funds. (Circle Reserve Fund, or USDXX, totals $60.7 billion.) For now, the launches look less like a meaningful source of industrywide asset growth than an effort by managers to establish infrastructure and market position ahead of potential stablecoin growth.
For more on Stablecoins and Stablecoin Reserve funds, see these Crane Data News stories: "Brookings Publishes Paper on Stablecoins After Genius: Tradeoffs, Risks" (8/24/26), "Stablecoin Reserves Recap by ignites; BlackRock Tokenizes Offshore MFs" (8/5/26), "BlackRock Launches BRSRV Tokenized Money Fund; Aviva Tokenized USD" (8/4/26), "Yahoo on Invesco Stablecoin Reserves" (7/1/26), "Fidelity Reserves Digital Fund Goes Live" (6/23/26), "State Street Stablecoin Reserves Goes Live" (6/17/26), "Federated MMR Digital Treasury Fund" (6/10/26), "Fidelity Files for Reserves Digital Fund, 5th Stablecoin Reserve MMF" (3/23/26), "BNY Stablecoin Reserves Goes Live; ICI: Assets Eke Out Record $7.5T" (11/14/25), "Goldman Sachs: Summer of Stablecoin; FT: Banks Lobby to Block Interest" (8/26/25), "BNY Dreyfus to Launch Stablecoin Reserves Fund; Joins Goldman, Circle" (8/20/25) and "Goldman Files to Launch Stablecoin Reserves Fund; Circle Q2 Earnings" (8/13/25).
The Brookings Institution published a white paper titled, "Stablecoins After GENIUS: Private Money, Public Debt, and the Global Dollar," which gives an excellent overview of the stablecoin market. The Abstract says, "This paper examines privately issued U.S. dollar-backed stablecoins and the implications of their potential growth following passage of the GENIUS Act in July 2025. It evaluates USD stablecoins as a form of private digital money and how they can improve domestic and cross-border payments, support the global role of the dollar, and improve the U.S. fiscal position. The paper highlights three tradeoffs for policymakers. First, well-regulated stablecoins can address some inefficiencies and gaps in domestic and cross-border payments through advantages in cost, speed, and 24/7 availability.... But policymakers need to recognize that what makes stablecoins attractive for money and payments also can reduce protections for users, make them more attractive for illicit finance, and weaken the existing financial connections that give sanctions and anti-money-laundering enforcement their force." (Note: Register ASAP for our European Money Fund Symposium show, which will be held in one month, Sept. 24-25, 2026 in Paris, France!)
It explains, "Second, stablecoin growth would increase demand for short-term Treasury bills and lower fiscal costs, but it would also shorten the maturity structure of federal debt and raise the variability of debt service costs, reduce seigniorage revenue, and risk impairing the availability of small business credit. Third, while growing overseas use of USD stablecoins supports the dollar's global role, foreign authorities are concerned about impairing the efficacy of their monetary policy and regulatory oversight and are accelerating their own payment system initiatives.... The paper makes some recommendations for navigating these tradeoffs as regulators finalize GENIUS Act rules and as Congress considers new legislation in the months ahead."
The Introduction tells us, "Stablecoins are digital assets that are issued, stored, and transferred on permissionless blockchain ledgers and backed by reserve assets to maintain stable values. Their development came in response to the high volatility in the value of crypto currencies, like Bitcoin, which limited the use of crypto for making mainstream payments. This paper looks at privately issued U.S. dollar (USD)-backed stablecoins and the implications from their potential growth following the passage of landmark legislation, the GENIUS Act, in July 2025. It evaluates how USD stablecoins function as money -- a private digital dollar -- and as a settlement asset for mainstream payments. It then discusses how they can potentially improve domestic and cross-border payments and, if stablecoin use were to scale significantly, what it might mean for the global role of the dollar and U.S. national security, the U.S. fiscal position, and domestic commercial bank deposits and credit."
It lists several key findings, then states, "[C]ommunity banks face risks of deposit outflows, and these banks are a primary source of credit for small businesses that lack access to larger banks or capital markets. The extent of deposit losses will depend on a number of factors, including how banks respond to new competitive pressures and what assets stablecoin issuers choose to hold as reserves. Even if stablecoins lead to substantial outflows over time, small businesses will likely find credit from other sources, as has been the experience with the growth of other deposit-like substitutes, such as MMFs."
The paper comments, "The USD stablecoin market has grown rapidly but remains small. Total outstanding balances reached approximately $270 billion in June 2026, up from $24 billion in 2020.... For context, M1 money supply -- a measure of the most liquid money consisting of currency, demand deposits, and other liquid deposits -- totaled more than $19 trillion. Tether's USDT, the largest USD stablecoin with a supply worth roughly $191 billion, is not domiciled in the US. Tether is offering a new stablecoin, USAT, in the U.S. to be compliant with GENIUS; current outstandings are only $187 million, but it is aiming for rapid growth in interbank settlement systems and corporate treasuries. Circle's USDC, which is domiciled in the US, is the second largest stablecoin, with issuance valued at roughly $68 billion. USDC has grown at a faster rate than USDT and has applied for a new OCC charter so that it can be used by U.S. residents and firms after GENIUS takes effect. There are other smaller stablecoins, and many have applied for charters since GENIUS passed, suggesting the market structure will continue to evolve."
The piece says later, "Since GENIUS allows uninsured bank demand deposits as reserves backing stablecoins, financial regulators should set higher capital requirements for them relative to currency or T-bills to ensure convertibility at par at all times. The OCC currently is reviewing comments on its proposed regulations that did not distinguish between the risks of uninsured bank deposits and other reserve assets that had no credit or liquidity risks for setting capital requirements. However, absent sufficient capital for uninsured deposits, a bank failure could cause the value of a stablecoin's reserves to fall below the par value of the outstanding stablecoins. The risk of such an outcome could prompt a run on the stablecoin because holders were no longer confident of convertibility at par value."
It continues, "The run in 2008 on the Reserve Primary Fund that held risky commercial paper issued by Lehman Brothers -- which could be comparable to risky uninsured deposits -- illustrates the run risk when risky assets are permitted without enhanced capital requirements to absorb any losses. Runs on a stablecoin could have systemic consequences for other stablecoins that hold similar assets, which could lead to stresses in broader funding markets if stablecoin issuers were forced to sell reserve assets to meet redemption requests."
The paper adds, "GENIUS also permits issuers to hold both repo and reverse repo as reserve assets. While permitting repo (in effect, the issuer borrows cash secured by Treasury collateral) is included to help stablecoin issuers meet liquidity demands, the Treasury collateral could be seized by the lender in the event the stablecoin issuer were to fail. This priority claim means that the value of the reserves could fall by more than the amount of stablecoins. The OCC should address this problem by allowing repo transactions but not permitting them to count as reserves in the segregated pool of assets to be made available to holders in the event of a failure."
It then explains, "Some of this mismatch may be mitigated by ongoing industry efforts to tokenize Treasury securities and government MMFs. In particular, DTCC (the main clearinghouse and securities depository for Treasury securities) is piloting a program to move Treasury securities on chain, whereby securities are moved to its new centralized Digital Account and tokens are issued on a (privacy enhanced/permissioned) blockchain (Canton). Token transfers would allow for 24/7 execution and atomic settlement. This differs from Treasury securities native to a blockchain which are a token representing the actual Treasury security. The security of the tokenization model relies on the cryptographic proof that the on-chain tokens are fully backed by the off-chain Treasury securities, which requires a constant, verifiable link between the custodian's records and the blockchain. In addition, BlackRock currently offers to institutional investors a tokenized government MMF with tokens issued on chain, and supports intra-day redemptions at pre-set time intervals. T+0 redemption is available to USDC via a Circle-operated swap facility at a small discount to net asset value (NAV) or redemption for cash is available at T+1."
The piece recommends, "The OCC (and state regulators, where applicable) should set capital, liquidity, and risk management standards to ensure convertibility at par, recognizing that some reserve assets permitted by GENIUS are not low-risk or highly liquid. Issuers who want to hold riskier assets, such as uninsured bank deposits, should have higher capital requirements. Repo transactions (borrowing based on Treasury collateral) should not be an eligible reserve asset for 1:1 backing in the segregated pool of assets. Holders should be able to redeem directly and on demand from the issuer, not only through authorized arbitrageurs on the secondary market. The current proposal by the OCC falls short of these recommendations and does not distinguish among reserve assets by risk nor create incentives to minimize their holdings of higher risk assets, and would allow two days for timely redemption."
It tells us, "Policymakers should evaluate tokenizing T-bills to address the liquidity mismatch between stablecoins with on-demand redemption and Treasury securities that settle T+1. This need could be obviated by industry efforts to tokenize Treasury securities or government MMFs if the security and resilience of the tokenization models are robust."
The Brookings update says, "We consider four asset categories that might experience reduced demand to support the growth of stablecoins: (i) domestic bank deposits, (ii) domestic currency, (iii) domestic MMFs, and (iv) foreign assets. The allocation is important because each sector differs by how much they already hold or invest in T-bills. For example, if a household sells a MMF share to buy a stablecoin, the stablecoin issuer would buy T-bills and the MMF would sell T-bills. The net effect on T-bill demand would depend on differences between the stablecoin issuer and the MMF in the share of their assets they hold in T-bills.... By contrast, if stablecoin growth comes from residents abroad moving money out of foreign currency and into USD stablecoins, it would generate substantial new net demand for T-bills."
It summarizes, "On net T-bill demand ... if stablecoin growth comes from bank deposits or assets abroad, it leads to significant new net demand. If stablecoin growth comes from substitution away from currency or MMFs, there is less net new demand.... Some have suggested, however, that if stablecoins were not able to pay interest or rewards, their velocity would increase dramatically, because users would minimize the holding period and switch to interest bearing assets, like a tokenized MMF.... However, tokenized MMFs are an investment vehicle rather than a payment instrument and, as such, intraday liquidity may be offered only at pre-set times and require a discount to NAV. It is more likely that corporate treasurers will rely, as they do today, on a combination of payment instruments to meet daily and high-frequency claims and MMFs for yield for claims that may not come due for days or weeks."
They write, "In summary, greater USD stablecoin adoption could create value on net for the U.S. in the near-to medium term. It could improve the efficiency of domestic and cross-border payments, corporate cash management, and institutional settlement and collateral management practices, including by increasing competition and prompting other innovations that bring these benefits. It also could maintain or enhance the role of the dollar in global financial markets and support its value, by ensuring there is a dollar-based digital payment instrument as global payment systems become increasingly digital. However, stablecoins do not yet have sufficient protections for users and against illicit finance, and any additional costs required to add these protections could reduce the net value they create. Greater stablecoin growth could result in a substantial increase in the demand for T-bills, which serve as reserve assets, though some growth could be a substitution from funding credit to small businesses. In addition, the concentration of demand for short maturity Treasury securities carries some risk for higher variability in Treasury debt service costs and greater rollover risk."
Finally, the paper adds, "Over a longer horizon, greater use of stablecoins that leads to material substitution away from money that is not settled by the central bank could create more fundamental risks to the structure of the financial system. The 'wildcat' banking period in the U.S. in the 1800s -- when banks issued their own demand notes without ways to ensure convertibility, leading to inefficient commerce, bank failures, and system collapses -- illustrates the risks. This episode was put to an end by the National Bank Act of 1863 which established a uniform national currency. While current projections for stablecoin growth could complicate monetary policy transmission through a credit or interest rate channel, neither are a real threat at this time. But significant growth over time could create risks to monetary control since stablecoins are money offered by private firms backed by T-bills and private assets, not by risk-free money issued by the central bank. This growth could raise important issues for the Federal Reserve and Congress as to how to accommodate private money that is not protected by the FDIC deposit insurance, Federal Reserve liquidity, and strong financial prudential regulations, which are the foundations in the current system for trust and confidence in money."
The Investment Company Institute's latest weekly "Money Market Fund Assets" report shows money fund assets rising a mere $900 million to $7.928 trillion. Assets rose $18.3 billion the previous week and increased $55.4 billion the week before this. MMF assets are up by $739 billion, or 10.3%, over the past 52 weeks (through 8/19/26), with Institutional MMFs up $582 billion, or 13.8% and Retail MMFs up $157 billion, or 5.4%. Year-to-date in 2026, MMF assets are up by $195 billion, or 2.5%, with Institutional MMFs up $167 billion, or 3.6% and Retail MMFs up $29 billion, or 0.9%. (Note: Please join us for our European Money Fund Symposium show, which will be held in just one month, Sept. 24-25, 2026 in Paris, France!)
ICI's weekly release says, "Total money market fund assets increased by $900 million to $7.93 trillion for the week ended Wednesday, August 19, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $1.45 billion and prime funds decreased by $1.90 billion. Tax-exempt money market funds increased by $1.35 billion." ICI's stats show Institutional MMFs decreasing $1.8 billion and Retail MMFs increasing $2.7 billion in the latest week. Total Government MMF assets, including Treasury funds, were $6.541 trillion (82.5% of all money funds), while Total Prime MMFs were $1.238 trillion (15.6%). Tax Exempt MMFs totaled $149.3 billion (1.9%).
It explains, "Assets of retail money market funds increased by $2.72 billion to $3.11 trillion. Among retail funds, government money market fund assets increased by $1.91 billion to $1.98 trillion, prime money market fund assets decreased by $373 million to $991.97 billion, and tax-exempt fund assets increased by $1.18 billion to $136.98 billion." Retail assets account for 39.2% of the total, and Government Retail assets make up 63.7% of all Retail MMFs.
They add, "Assets of institutional money market funds decreased by $1.82 billion to $4.82 trillion. Among institutional funds, government money market fund assets decreased by $459 million to $4.56 trillion, prime money market fund assets decreased by $1.52 billion to $246.11 billion,and tax-exempt fund assets increased by $167 million to $12.27 billion." Institutional assets accounted for 60.8% of all MMF assets, with Government Institutional assets making up 94.6% of all institutional MMF totals.
According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $65.0 billion to $8.354 trillion month-to-date in August (as of 8/19), assets reached an all-time high of $8.404 trillion on July 6. Assets decreased $61.4 billion in July, increased $58.6 billion in June, $208.6 billion in May, decreased by $108.8 billion in April, $49.3 billion in March, increased $99.5 billion in February, $32.9 billion in January, $126.3 billion in December, $132.8 billion in November, $142.1 billion in October, $105.2 billion in September and $132.0 billion 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, J.P. Morgan's latest "JPM Mid-Week US Short Duration Update," titled, "Summer of hot, humid and soft repo," tells us, "Repo conditions have remained in a clear soft patch so far this month, with SOFR mostly printing flat to 1–2bp below EFFR, even as money market investors have absorbed sizeable supply -- $204bn MTD of net T-bill supply to private investors (and $425bn since June-end). With the bulk of the seasonal supply ramp now behind us—and only minimal additional T-bill supply expected to be digested by private investors over the next two weeks -- we do not see a compelling case for funding conditions to firm materially in the near term."
They write, "[T]he cash backdrop remains supportive. MMF AUMs have risen by nearly $95bn MTD, taking total AUM to roughly $8.2tn -- already above the typical August seasonal build of about $92bn. At the same time, WAMs have shortened again (down 1 day to 35 days for government funds and 2 days to 34 days for prime), suggesting a continued preference for liquidity -- likely reflecting Fed policy uncertainty, even as expectations have moderated somewhat more recently.... That combination (more cash and shorter WAMs) might also be reinforcing the soft tone in repo."
Authors Pankaj Vohra and Molly Herckis explain, "Looking a bit further ahead into September, we still do not expect a durable firming in funding. We currently look for negative net T-bill supply in September, which should reduce the amount of front-end supply money market investors need to absorb. We do expect the usual September mid-month transients -- reserve declines, MMF outflows, and settlement dynamics -- to generate some pressure, but historically these events have been brief rather than persistent. Around the September corporate tax period, taxable MMF AUMs have tended to fall by roughly about 0.7%-pts in the run-up to the payment date ... if repeated this year, that would imply a manageable $60–70bn of outflows across the complex."
They add, "Meanwhile, reserves tend to drop between 3-4% ... applying that to current reserve levels near $3tn implies a temporary decline of around $100bn, with reserves generally rebuilding after the corporate tax date. To that end, while we could see temporary pockets of firmness around mid-September and quarter-end, we do not expect sustained dislocations in funding markets absent reduced dealer balance sheet capacity or a meaningful extension in MMF positioning. September SOFR/FF (SERFFU6) pricing also looks broadly fair at -0.5bp to -1.0bp."
Finally, this past weekend's Barron's writes, "Vanguard Conquered the ETF World. Where It's Aiming Next." The article interviews Vanguard Group CEO Salim Ramji, who comments on bond funds and ETFs (see our upcoming Bond Fund Intelligence for more on this), but who also touches on cash. The piece says, "For Ramji, the answer is to apply the company's investor-friendly mission and relentless focus on cutting costs for customers to three main areas ripe for growth: high-yield cash savings, financial advice, and fixed-income investing."
It states, "One of the company's biggest fund launch success stories is the Vanguard 0-3 Month Treasury Bill ETF (VBIL), which reached $5 billion in assets less than a year after debuting in February 2025. That makes it the fastest-growing Vanguard ETF—fixed income or equity."
Barron's tells us, "Of the three pillars of Vanguard's growth strategy, customer cash may hold the most promise in terms of new client growth. The Vanguard Cash Plus Account, a high-yield Federal Deposit Insurance Corp.–insured savings offering that launched in early 2024, just before Ramji joined, has become one of the company's most successful offerings in its history, according to executives. More than half a million customers have signed up for a Cash Plus Account, with an average balance of $42,000. Cash Plus currently pays annual interest of 3.35%, compared with a national average savings account yield of 0.62%, according to Bankrate."
They add, "About one in four Cash Plus customers are new to Vanguard, giving the company an opportunity to introduce them to its other offerings, such as self-directed brokerage and advice. Vanguard plans further Cash Plus enhancements, such as adding a debit card. A majority of these new customers have tapped additional Vanguard services. 'All investors first start as savers,' Ramji says."
While Crane Data makes preparations for our European Money Fund Symposium, which will take place Sept. 24-25 in Paris, we're also starting to focus on our next Money Fund University conference, which will be in Greenwich, Dec. 17-18. Crane's Money Fund University is designed for those new to the money market fund industry or those in need of a concentrated refresher on the basics. The event also focuses on hot topics like money market fund regulations, money fund alternatives, offshore markets, and other recent industry trends. Our educational conference features a faculty of the money fund industry's top lawyers, strategists, and portfolio managers, and the Greenwich show will include our Holiday cocktail party Dec. 17 and a free product training session for Crane Data clients. We review the MFU agenda and some other upcoming conferences, below.
Money Fund University offers a 2-day crash course on money market mutual funds, educating attendees on the history of money funds, the Fed, interest rates, ratings, rankings, and money market instruments such as commercial paper, Treasury bills, CDs and repo. We also cover portfolio construction and credit analysis. Registrations are $750 and are now being taken, and the latest agenda is available here. (E-mail us to request the latest brochure, and make your hotel reservations here!)
The morning of Day One (12/17/26) of the 2026 MFU agenda includes: Welcome to Money Fund University, History & Current State of Money Funds with Peter Crane of Crane Data; The Federal Reserve & Money Markets with Katie Craig of Bank of America; Ratings, Monitoring & Performance with Steven Johnson of Fitch Ratings, Andrea Valverde of S&P Global and Peter Crane of Crane Data; and, Instruments of the Money Markets Intro with Pankaj Vohra of J.P. Morgan Securities.
Day One's afternoon agenda includes: Repurchase Agreements with Dan Boate of J.P. Morgan Securities; Treasuries & Govt Agencies with Sue Hill of Federated Hermes and Matt Lachance of TD Securities; Commercial Paper & ABCP with Greg Jensen of Citi Global Markets; CDs, TDs & Bank Debt with Vanessa McMichael of Wells Fargo Securities; and, Credit Analysis & Portfolio Management with Peter Henshaw and Keith Lawler of BNY Dreyfus. (Note: Crane Data will host its Holiday Party alongside MFU. Clients and friends are welcome to join us at the Hyatt Regency in Greenwich, Conn. on Thursday, Dec. 17 from 5-7:30pm!)
Day Two's (12/18) agenda includes: Money Fund Regulations: 2a-7 Basics & History with Stephen Cohen of Dechert LLP and Geena Marzouca of Stradley Ronon Stevens & Young; Tokenized Money Funds, Stablecoins & ETFs with Stephen Cohen of Dechert LLP and Jon-Luc Dupuy of K&L Gates LLP; European MMFs & Ultra-Short Bond Funds with Peter Crane of Crane Data and John Hunt of Sullivan & Worcester LLP; and Money Fund Data & Wisdom Demo/Training with Peter Crane. The conference ends with its annual MFU "Graduation" ceremony (where diplomas are given to attendees).
New portfolio managers, analysts, investors, issuers, service providers, and anyone interested in expanding their knowledge of "cash" investing should benefit from our comprehensive program. Even experienced professionals may enjoy a refresher course and the opportunity to interact with peers in an informal setting. Exhibit space for Crane's Money Fund University is $2,000, and sponsorship opportunities are $3K (Bronze), $4K (Silver), and $5K (Gold). A block of rooms has been reserved at The Hyatt Regency Greenwich. (Please reserve before 11/20.)
We'd like to thank our past MFU sponsors -- Northcross Capital, Federated Hermes, Fitch Ratings, CastleOak Securities, BlackRock, TD Securities, Capitolis, Northern Trust, Dechert, J.P. Morgan Asset Management, K&L Gates, Dreyfus, Citi and GLMX -- for their support, and we look forward to seeing you in Greenwich in December! E-mail Pete Crane (pete@cranedata.com) for the latest brochure or visit www.moneyfunduniversity.com to register or for more details.
Also, the latest agenda is available and registrations are still being taken for our European money market mutual fund event. Registration for European Money Fund Symposium is $1,000 USD. EMFS will be held at Hotel Pullman Paris La Defense. Visit www.craneeurosymposium.com to register, and contact us to request the PDF brochure. (Let us know too if you'd like information on sponsorships or speaking in future years too.)
Mark your calendars too for our next Bond Fund Symposium, which will be held in Philadelphia, Pa., on March 22-23, 2027. (Click here to see last year's agenda.) Bond Fund Symposium is the only conference devoted entirely to bond mutual funds, bringing together bond fund managers, marketers, and professionals with fixed-income issuers, investors and service providers. The majority of the content is aimed at the growing ultra-short and conservative ultra-short bond fund marketplace.
Finally, Crane Data is starting preliminary preparations for our next big show, Money Fund Symposium, which is scheduled for June 23-25, 2027 in Philadelphia, Pa. The agenda will be released later this fall and registrations will open soon. Let us know if you'd like more details on any of our events, and we hope to see you in Paris in September or in Greenwich in December this year, or in Philadelphia in March or June 2027. Thanks to all of our speakers and sponsors and for your support!
S&P Global Ratings published "U.S. Domestic 'AAAm' Money Market Fund Trends (Second-Quarter 2026)" recently, which tells us, "Rated government and prime MMF assets grew to $4.8 trillion by the end of the second quarter. Rated government MMF assets increased 4.3% and rated prime MMF assets increased 0.8% during the first half of the year. Flows were in line with seasonal trends, where assets dipped during tax season before rebounding." (Note: Register soon for our European Money Fund Symposium show, which will be held in just over a month, September 24-25, 2026 in Paris, France!)
They explain, "However, we observed stronger inflows during the first half of 2026 compared with the same period last year. We expect asset growth in 2026 to outpace 2025 levels based on inflows in the year to date, heightened geopolitical risk, and changing economic forecasts. Portfolio managers have mixed opinions on Federal Reserve policy, ranging from the Fed being on hold to possibly raising rates, but agree that rate cuts in 2026 are no longer realistic. Altogether, increased uncertainty and elevated rates should support market appetite for MMFs."
S&P says, "Seven-day net yields for rated MMFs have dropped modestly since the beginning of the year. Average seven-day net yields for rated government and prime MMFs fell 10 basis points (bps) and 7 bps, respectively, most of which occurred in the first quarter. During the second quarter, seven- day net yields were relatively stable but started increasing slightly, as possible rate hikes were factored into market prices."
They state, "The Federal Reserve held the fed funds rate at 3.50%-3.75% at all five of its rate settings meetings year to date. At the onset of 2026, S&P Global Ratings economists expected some form of easing but are forecasting no change to the policy rate this year, citing inflation running above the Fed's target 2%, sustained strength in the labor market and uncertainty around impacts related to the conflicts in the Middle East."
S&P tells us, "Rated government MMFs continued to hold increasing amounts of repurchase agreements (repo). Average repo exposure increased to 39% from 36% over the first six months of the year. Average Treasury bill exposure decreased to 30% from 36% during the same period, as Treasury bill issuance was suppressed. According to the Securities Industry and Financial Markets Association (SIFMA), net Treasury bill issuance was only $143 billion in the first half of 2026."
They continue, "We expect some shifting back into Treasury bills given the U.S. Treasury Department's guidance for significantly higher Treasury bill issuance for the remainder of the year. Rated government MMFs also increased exposure to both fixed and floating rate agency paper, where issuance was more robust than Treasuries. Managers found relative value especially in agency floaters, and average exposure to this asset type exceeded 9% by the end of the second quarter."
S&P also says, "Toward the end of 2025, bank deposit exposure in rated prime MMFs decreased to some of the lowest levels we've observed in recent years due to attractive repo rates. Average bank deposit exposure rebounded to some degree during the first half of the year, increasing to 11% from 7%. Concurrently, elevated repo exposure normalized, decreasing to 38% from 43%. Managers of rated prime MMFs generally used uncleared repo, citing that they could source similar or better rates in uncleared repo and were reserving their cleared repo capacity for the government strategies."
They add, "Managers also noted they're operationally prepared for the SEC's June 2027 deadline for clearing eligible U.S. Treasury repo. Exposure to U.S. government securities increased temporarily in early 2026, as managers purchased additional U.S. Treasury bills to build liquidity before tax season. Shortly after, managers relocated assets into certificates of deposit (CDs). Additionally, we observed a slight uptick in corporate note purchases, while asset-backed commercial paper (ABCP) holdings remained stable despite a rise in ABCP supply. Managers opted to limit purchases of ABCP, which is characterized by extremely short maturities, since they were extending the maturity profile of portfolios."
Finally, the update says, "Managers of rated MMFs extended portfolios during the first half of 2026 based on expectations for rate cuts, even if delayed. As forecasts evolved and rate hikes became realistic, managers of rated government MMFs started pulling in weighted average maturities (WAMs) late in the second quarter. Since the start of 2026, average WAMs for rated government MMFs peaked at 43 days and ended the second quarter at 38 days. Average WAMs for rated prime MMFs ended the second quarter above those of rated government MMFs. Rather than reducing maturity profiles, managers of rated prime MMFs took advantage of steepness in front-end credit curves and continued purchasing commercial paper and CDs, especially six and nine-month tenors. The distribution of net asset values (NAVs) per share for rated MMFs shifted upward, with most funds experiencing an increase in their NAV in the first and second quarters of 2026. The range for rated fund NAVs was 0.9994-1.0010."
In related news, Fitch Ratings also published its "U.S. Money Market Funds Monitor: 2Q26." It states, "Total taxable money market fund (MMF) assets increased by $155.47 billion from March 31, 2026, to June 30, 2026, reaching $8.20 trillion, according to Crane Data. However, quarter-end assets were below the intra-quarter high of approximately $8.22 trillion on June 15, likely reflecting U.S. estimated tax payments. Over the quarter, Government MMFs gained $71.42 billion in assets, Treasury MMFs gained $76.65 billion, and Prime MMFs gained $7.40 billion. The growth in balances likely reflected demand for liquidity around tax dates and quarter-end, as well as continued geopolitical uncertainty further supporting flows into government funds."
Fitch continues, "Taxable MMFs continued to add agencies, rising by $108.43 billion over the quarter after increasing by $86.0 billion in the prior quarter. Treasury holdings declined further, falling $140.91 billion over the quarter after a $110.93 billion decline in the previous quarter. In contrast, repo balances rebounded sharply, increasing $137.18 billion following a $59.53 billion decline last quarter. The shift suggests managers favored short-term liquidity and duration flexibility, using repo to maintain deployable cash while favoring agencies over Treasuries for incremental yield. The rotation to repos also reflects ongoing market uncertainty surrounding the Middle East conflict, the appointment of a new Fed Chairman and shifting rate expectations."
They add, "As of June 30, 2026, Institutional Government and Prime MMF net yields were 3.45% and 3.59%, respectively. Government yields declined 2 bps from the prior quarter, while Prime yields were unchanged. This stability reflects the steady federal funds rate through the period, conservative liquidity positioning, and strong demand for short dated government and high-quality money market instruments."
Barron's "Income Investing" column, titled, "Inflation and Taxes Are Eating Into Your Savings. What You Can Do About It," contained the same error as a Wall Street Journal piece from last week -- it compared the current yield on money funds with the inflation rate over the past year. Columnist Randall Forsynth writes, "Congratulations, savers. Your money-market fund is now yielding more than inflation, if only by a hair. But after paying taxes on your money fund's earnings, you're still behind the inflation bogey. What to do? 'Nothing' seems to be the answer from those individuals who keep $3 trillion stashed in money funds yielding about 3.5%, 10 basis points more than the 3.4% increase in the consumer price index in the latest 12 months, but less than that after rendering unto Uncle Sam." (Crane Data Note: The latest money fund yield would be more appropriately compared with the latest month's inflation reading, which is 1.2% annualized.)
The column continues, "Those in the very top federal tax bracket of 37%, plus the net investment income tax of 3.8%, net a little over 2% from money-market yield. A relatively well-off married couple earning over $250,000, who would face a 27.8% rate including the 3.8% NIIT, would need a pretax yield of 4.71% just to stay even with inflation. That doesn't count state and local taxes (which can be avoided by sticking to Treasury securities)."
It says, "That's not a terribly high bar to clear. The benchmark 10-year Treasury note yielded about 4.70% this past week. But the iShares 7-10 Year Treasury Bond exchange-traded fund, which tracks that section of the yield curve, has had a negative 1.07% total return for the year through Aug. 12, according to Morningstar. Given the ineluctable bond math -- prices go down when yields rise -- risk-averse investors aren't abandoning money markets."
Barron's piece explains, "While it's always dangerous to generalize from anecdotes, some folks I’ve heard who have sold businesses for a nice chunk of change are content to stick with T-bills. They're the polar opposite of Gen Z day traders who, as Bob Dylan sang, 'ain't got nothin' and got nothin' to lose.'"
It adds, "But what's the answer for those who aren't so well off and have to stay ahead of inflation and taxes and want to do so without taking on risk? 'That's the great, several-million-dollar question,' says Abhijeet Patwardhan, portfolio manager of the FPA New Income fund. Unfortunately, there are no magic answers, he quickly adds. Higher-yielding corporate bonds provide only a slim spread over government securities, while longer-maturity Treasuries are a 'dangerous path to go down,' he says, given the aforementioned price risk from rising yields."
In other news, Franklin Templeton submitted a request to the U.S. Securities and Exchange Commission asking for permission to other Franklin funds to invest in its Franklin OnChain U.S. Government Money Fund. It states, "Franklin Templeton is submitting this letter on behalf of the U.S. registered open-end and closed-end investment companies within the Franklin Templeton family of funds ... that are advised by investment advisers that are under the direct or indirect control of Franklin Templeton, to respectfully request assurance that the staff of the Division of Investment Management of the U.S. Securities and Exchange Commission will not recommend enforcement action to the Commission under section 17(f) of the Investment Company Act, as amended and Rule 17f-2 thereunder, if the Funds establish custodial arrangements in the manner and subject to the representations described below, with respect to the Funds' investments in shares of the Franklin OnChain U.S. Government Money Fund, a series of Franklin Templeton Trust, without compliance with paragraphs (b), (e) and (f) of Rule 17f-2."
The request continues, "This no-action request is informed and supported by the Staff's September 24, 1992 no action letter to Franklin Investors Securities Trust ..., which provided a no-action position with respect to the same paragraphs (b), (e) and (f) of Rule 17f-2 in connection with an affiliated master-feeder fund arrangement. The Funds are, however, requesting that the Staff provide new assurances because certain relevant facts differ from those addressed in the 1992 NAL."
It states, "In particular, for the OnChain Fund, Franklin Templeton Investor Services LLC ('FTIS'), a registered transfer agent under the Securities Exchange Act of 1934, maintains the official record of share ownership (i.e., the master securityholder file) using a proprietary recordkeeping system that is integrated with blockchain/distributed ledger technology, rather than solely through the traditional book-entry system described in the 1992 NAL. In addition, FTIS will maintain and secure the private keys associated with the blockchain wallets holding the investing Funds' shares of the OnChain Fund."
The request states, "Notwithstanding the changed factual circumstances, we believe that safeguards similar to those described in the 1992 NAL would satisfy relevant investor-protection objectives served by Rule 17f-2. Further, we believe that compliance with paragraphs (b), (e) and (f) of Rule 17f-2 would be burdensome and impractical with respect to the custody of shares of the OnChain Fund without corresponding benefits to the Funds shareholders.... The 1992 NAL involved the Trust, its Franklin Adjustable Rate Securities Fund series, and Adjustable Rate Securities Portfolio, another registered open-end management investment company in which the Feeder Fund invested."
It adds, "The OnChain Fund is an open-end management investment company and a money market fund relying on Rule 2a-7 under the 1940 Act. The OnChain Fund invests at least 99.5% of its total assets in Government Securities, cash and repurchase agreements collateralized fully by Government Securities or cash, and operates as a 'government money market fund,' as such term is defined in or interpreted under Rule 2a-7 under the 1940 Act. The OnChain Fund does not invest in cryptocurrencies or other digital assets. The OnChain Fund operates in the same manner as other money market funds registered under the 1940 Act, except with respect to the method FTIS uses to record the OnChain Fund's share ownership. Beginning Feb. 8, 2022, and after extensive discussions with the Staff, as well as the staff of the Division of Trading and Markets and the Division of Corporation Finance, FTIS began maintaining the official share ownership records of the OnChain Fund on the Integrated System."
The SEC's "Response of the Office of Chief Counsel Division of Investment Management" regarding "Investment Company Act of 1940 - Section 17(f) and Rule 17f-2" states, "In your August 12, 2026 letter on behalf of the U.S. registered open-end and closed-end investment companies within the Franklin Templeton family of funds ... that are advised by investment advisers that are under the direct or indirect control of Franklin Templeton, you request our assurance that we would not recommend enforcement action to the Securities and Exchange Commission against the Funds under section 17(f) of the Investment Company Act of 1940, as amended and Rule 17f-2 thereunder, if the Funds establish custodial arrangements in the manner and subject to the representations described below, with respect to the Funds' investments in shares of the Franklin OnChain U.S. Government Money Fund, a series of Franklin Templeton Trust, without compliance with paragraphs (b), (e) and (f) of Rule 17f-2.... Based upon the facts and representations set forth in your letter, staff of the Division of Investment Management would not recommend enforcement action."
Crane Data's latest Money Fund Intelligence International shows that assets in European or "offshore" money market mutual funds decreased over the past 30 days to $1.696 trillion, the month prior assets reached a record high of $1.706 trillion. Yields were up, while assets for USD and EUR MMFs declined and GBP MMFs rose over the past month. Like U.S. money fund assets, European MMFs have repeatedly hit record highs in 2023, 2024, 2025 and 2026. These U.S.-style money funds, domiciled in Ireland or Luxembourg and denominated in US Dollars, Pound Sterling and Euros, decreased by $10.2 billion over the 30 days through 8/13. The totals are up $111.5 billion (7.0%) year-to-date for 2026. They were up $151.9 billion (10.6%) for 2025, 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: Please join us for our upcoming European Money Fund Symposium, which will be held Sept. 24-25 in Paris, France.)
Offshore US Dollar money funds decreased $9.5 billion over the last 30 days and are up $56.2 billion YTD to $892.2 billion; they increased $92.3 billion in 2025. Euro funds decreased E1.4 billion over the past month. YTD, they're up E21.6 billion to E352.0 billion, for 2025, they increased by E12.6 billion. GBP money funds increased L680 million over 30 days, and they're up L15.9 billion YTD at L289.0B, for 2025, they rose L18.5 billion. U.S. Dollar (USD) money funds (328) account for over half (52.6%) of the "European" money fund total, while Euro (EUR) money funds (248) make up 24.4% and Pound Sterling (GBP) funds (213) total 23.0%. We summarize our latest "offshore" money fund statistics and our Money Fund Intelligence International Portfolio Holdings (which went out to subscribers Friday), below.
Offshore USD MMFs yield 3.61% (7-Day) on average (as of 8/13/26), up 4 bps from a month earlier. Yields averaged 4.20% on 12/30/22 and 0.03% on 12/31/21. EUR MMFs, which left negative yield territory in the second half of 2022, yield 2.22% on average, up 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 36 months ago, but they broke back below 5.0% 25 months ago. They now yield 3.78%, up 1 bp from a month ago, and 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 7/31/26, show that European-domiciled US Dollar MMFs, on average, consist of 28% in Commercial Paper (CP), 16% in Certificates of Deposit (CDs), 28% in Repo, 15% in Treasury securities, 11% in Other securities (primarily Time Deposits) and 2% in Government Agency securities. USD funds have on average 50.6% of their portfolios maturing Overnight, 5.5% maturing in 2-7 Days, 7.2% maturing in 8-30 Days, 8.0% maturing in 31-60 Days, 7.6% maturing in 61-90 Days, 12.4% maturing in 91-180 Days and 8.7% maturing beyond 181 Days. USD holdings are affiliated with the following countries: the U.S. (37.0%), France (10.8%), Canada (10.2%), Japan (7.3%), the U.K. (5.6%), Germany (5.4%), Australia (4.8%), the Netherlands (3.4%), Finland (3.3%) and Sweden (3.1%).
The 10 Largest Issuers to "offshore" USD money funds include: the US Treasury with $133.2B (15.0%), Fixed Income Clearing Corp with $49.9B (5.6%), JP Morgan with $36.9B (4.2%), Nordea Bank with $28.1B (3.2%), Barclays PLC with $24.1B (2.7%), Credit Agricole with $22.6B (2.6%), Societe Generale with $20.0B (2.3%), Deutsche Bank AG with $19.2B (2.2%), RBC with $18.4B (2.1%) and Australia & New Zealand Banking Group Ltd with $18.0B (2.0%).
Euro MMFs tracked by Crane Data contain, on average 36% in CP, 22% in CDs, 13% in Other (primarily Time Deposits), 26% in Repo, 3% in Treasuries and 0% in Agency securities. EUR funds have on average 40.9% of their portfolios maturing Overnight, 7.2% maturing in 2-7 Days, 9.1% maturing in 8-30 Days, 11.9% maturing in 31-60 Days, 8.8% maturing in 61-90 Days, 13.8% maturing in 91-180 Days and 8.4% maturing beyond 181 Days. EUR MMF holdings are affiliated with the following countries: France (24.8%), the U.S. (10.9%), Canada (10.3%), Japan (9.8%), the Netherlands (6.0%), the U.K. (5.1%), Germany (4.9%), Sweden (4.5%), Belgium (4.2%) and Finland (3.9%).
The 10 Largest Issuers to "offshore" EUR money funds include: Credit Agricole with E15.7B (5.0%), BNP Paribas with E15.1B (4.8%), JP Morgan with E12.3B (3.9%), Mizuho Corporate Bank Ltd with E10.6B (3.4%), ING Bank with E10.2B (3.2%), Bank of Nova Scotia with E8.6B (2.7%), Republic of France with E8.6B (2.7%), RBC with E8.4B (2.7%), Societe Generale with E8.3B (2.6%) and Nordea Bank with E8.1B (2.6%).
The GBP funds tracked by MFI International contain, on average (as of 7/31/26): 33% in CDs, 23% in CP, 20% in Other (Time Deposits), 20% in Repo, 3% in Treasury and 1% in Agency. Sterling funds have on average 37.1% of their portfolios maturing Overnight, 7.5% maturing in 2-7 Days, 9.0% maturing in 8-30 Days, 10.1% maturing in 31-60 Days, 9.6% maturing in 61-90 Days, 16.7% maturing in 91-180 Days and 10.1% maturing beyond 181 Days. GBP MMF holdings are affiliated with the following countries: Canada (15.1%), France (15.0%), the U.K. (12.9%), the U.S. (11.5%), Japan (10.0%), Australia (8.2%), the Netherlands (5.4%), Singapore (4.0%), Spain (3.1%) and Finland (2.9%).
The 10 Largest Issuers to "offshore" GBP money funds include: UK Treasury with L15.4B (5.8%), RBC with L13.2B (5.0%), BNP Paribas with L13.1B (4.9%), Citi with L9.6B (3.6%), JP Morgan with L8.0B (3.0%), Mizuho Corporate Bank Ltd with L7.7B (2.9%), Banco Santander with L7.6B (2.8%), Credit Agricole with L7.5B (2.8%), Australia & New Zealand Banking Group Ltd with L7.5B (2.8%) and Toronto-Dominion Bank with L7.2B (2.7%).
In other news, State Street Investment Management (SSIM) recently posted a "Monthly Cash Review USD," titled, "Higher-for-longer keeps cash in focus." Will Goldthwait writes, "July had a little something for everyone.... For cash investors, however, the story was considerably simpler. Short-term yields remained attractive, money market funds continued to offer compelling income opportunities, and the Federal Reserve once again demonstrated that rate cuts are not distributed simply because certain people want them."
A section titled, "What Matters For Cash Investors," states, "Despite the headlines, the environment for cash investors remained constructive. The money market curve continues to offer attractive yields, liquidity conditions remained healthy, and front-end interest rates stayed elevated. Funding markets functioned smoothly despite increased Treasury bill issuance and periodic market volatility. More importantly, the month reinforced a message that cash investors have benefited from repeatedly over the past year: patience continues to generate income."
The brief adds, "July reminded investors that uncertainty is not a policy mistake. It is often the natural consequence of an economy that continues to evolve. The Federal Reserve does not know precisely where inflation, growth or employment will be six months from now. Nor does anyone else.... Looking ahead, as long as inflation remains above target and policymakers continue to emphasise data dependence, the environment should remain supportive for cash investors. In the meantime, the cash market continues doing what it does best: generating income, preserving liquidity and quietly avoiding most of the drama. That sounds like a pretty good outcome."
The August issue of our Bond Fund Intelligence, which was sent to subscribers Friday a.m., features the articles, "Bond Fund Inflows Slow But Assets Decline; Shorts Winning," which reviews the latest bond fund asset and flow data from BFI, ICI and other sources; and "Higher Short-Term Yields Attracting Attention," which excerpts from recent coverage of short-term bond yields and money fund alternatives. BFI also recaps the latest Bond Fund News and includes our Crane BFI Indexes, which show that bond fund returns fell in July while yields rose. 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, "Bond funds saw assets decrease in July, but the inflows kept coming, especially to shorter-term funds. Assets fell by $33.6 billion to $3.182 trillion, after rising $27.7B the previous month, according to BFI. Assets have risen $239.8 billion, or 8.1%, over the past year. Our Bond ETF totals jumped by $156.9B to $1.712 trillion in July, but note that we added $154.1B in new funds (including the $100.1B SGOV and some Schwab ETFs)."
It continues, "ICI's 'Combined Estimated Long-Term Fund Flows and ETF Net Issuance' (8/5 data) says, 'Bond funds had estimated inflows of $19.68 billion for the week, compared to estimated inflows of $6.33 billion during the previous week. Taxable bond funds saw estimated inflows of $18.19 billion, and municipal bond funds had estimated inflows of $1.49 billion.' Over 5 weeks, bond funds and ETFs saw inflows of $77.5B."
Our "Higher Short-Term Yields" article states, "Barron's writes, 'Look What the Fed Did to the Bond Market This Week.' The piece says, 'The Federal Reserve may get around to raising its short-term interest rate target later this year, but short-term bond yields already reflect that eventuality. Investors and savers can boost their yields without adding much risk by shifting out of money-market funds.'"
It continues, "They ask, 'But to what, exactly? Extending to longer-term securities adds significant risks without commensurate returns. And the prospect of Fed rate hikes also increases the potential downside for leveraged investments, such as many closed-end funds. Still, there are some bargains to be had -- namely among shorter-term Treasuries. And a few closed-end funds still make the cut.'"
Our first News brief, "Returns Fall in July, Yields Increase," states, "Bond fund returns fell in July while yields rose. Our BFI Total Index dropped 0.74% over 1-month but rose 4.03% over 12 months. (Money funds rose 3.72% over 1-year as measured by our Crane 100 Index.) The BFI 100 decreased 0.83% in July and rose 3.64% over 12 mos. Our BFI Conservative Ultra-Short Index was up 0.29% over 1-month and 4.12% for 1-year; Ultra-Shorts rose 0.31% and 4.14%. Short-Term rose 0.02% and 3.60%, and Intm-Term decreased 1.16% in July and rose 3.24% over 12 mos. BFI's Long-Term Index was down 1.80% and up 2.59%. High Yield fell 0.24% in July and rose 4.99% over 12 mos."
A second News brief, "Barron's Says 'A Popular Corporate Bond Fund Is Trading at a 12-Month Low,'" states, "They write, 'BlackRock's $35 billion iShares iBoxx $ Investment Grade Corporate Bond ETF is currently at $106.74. If it ends the session at that level, it would mark its lowest close since May 23, 2025, when it reached $106.28. The fund has enjoyed an average annual return of 6.2% over the past 15 years, although over the last five years it's down 3.7% annually on average, latest Morningstar data shows.'"
Our third brief says, "An SEC filing for Goldman Sachs Bond Fund and Goldman Sachs Income Fund says, 'The Board of Trustees of the Goldman Sachs Trust has approved Agreements and Plans of Reorganization, which contemplate the conversion of each of the Goldman Sachs Bond Fund and Goldman Sachs Income Fund with and into the Goldman Sachs Core Plus Bond ETF and Goldman Sachs Income ETF, respectively.'"
A BFI sidebar, "Morningstar's Big Bond ETFs," states, "Morningstar writes on 'How the Largest Bond ETFs Performed.' They tell us, 'Out of the 10 largest US bond ETFs, the top performer last month was the $98.8 billion iShares 0-3 Month Treasury Bond ETF SGOV, which gained 0.33%. The bottom performer was the $137 billion iShares Core US Aggregate Bond ETF AGG, which lost 1.31%. Here's more about the performance of the largest bond ETFs.'"
Finally, another sidebar, "NY Times on Rising Rates," states, "The New York Times says that, 'The Bond Market Is Signaling Rising Risks. Investors Should Listen.' The column says, 'The Federal Reserve held interest rates steady in its latest meeting. But another important power in the financial world raised them. That's the bond market, where thousands of traders make moment-by-moment decisions that can add up collectively to crucial policy shifts for the world economy. The bond market is a global giant, with more than $58 trillion in assets in the United States alone. It doesn't command headlines the way the stock market does, but when the bond market talks, people need to listen, in finance and beyond. What the bond market has been saying lately is that risks are rising: risks of increased inflation; wars and tariffs and other geopolitical dislocations; questionable use of vast sums of capital to build artificial intelligence; an uncertain direction for the Fed under new leadership; mounting national debt; and broad political dysfunction.'"
The Wall Street Journal posted an article titled, "Wealth Management Has a $3 Trillion Problem: Investors Are Keeping Too Much Cash." Subtitled, "Advisers are pitching bonds and other investments, but many prefer to keep cash in money-market funds," it tells us, "Since Don Ross retired as an airline pilot a decade ago, all the financial planners he has spoken with have wanted him to invest his cash. He isn't sold. He is keeping 85% of his portfolio in stocks and the rest in a money-market fund yielding 3.62%. Ross looked at historical bear markets and determined they typically don't last longer than three years. He keeps enough of his portfolio in cash to comfortably get himself through that period, and he sells stocks when he needs to replenish his cash pile."
The piece says, "He is among the investors giving headaches to the money managers who want them to part ways with their cash. Individual investors are sitting on a mountain of it. There is over $3 trillion in retail money-market funds, hovering around a record high, according to the Investment Company Institute. (And that doesn't include the trillions of institutional dollars sitting in money-market funds.)"
It continues, "Assets flooded into these funds in 2022 when the Federal Reserve ended its policy of near-zero interest rates. Money-market yields rose above 5%. Rates have since fallen, but money-market funds, which now yield 3.49% on average, according to Crane Data, have retained their appeal. Now wealth and asset managers, eager to prove their worth and in many cases earn more fees, are trying to persuade investors to put it to work."
The WSJ explains, "The risk, they argue, is that the yield on cash won't keep pace with inflation. Money-market yields are currently right about at the rate of inflation. Many advisers are pitching alternatives, including corporate bonds, municipal bonds and more exotic offerings such as buffer exchange-traded funds and private credit."
It adds, "Todd Stankiewicz, chief investment officer of wealth manager Sykon Capital, said he devotes a significant amount of time to getting clients to consider alternatives to cash amid lackluster bond performance.... Still, he acknowledged, if the stock market underperforms the yield on a money-market fund, investors would have been better off staying put. Ross, the former airline pilot, says he is wary of complex investments with high fees. He also doesn't like bonds, noting that the 10-year annualized return on Vanguard's total bond market ETF is just over 1%.... 'When I look at somebody saying, 'you need to get back into the market,' the first thing I'm asking is: Why are they saying that?' he said."
In related news, website RIA Biz claims in a piece, "Schwab is nixing FDIC backing on brokerage sweep cash as soon as Sept. 8 by moving it all under SIPC -- with clear drawbacks for investors, say analysts."
They write, "Charles Schwab & Co. just gave notice that investors will no longer get FDIC protection for sweep cash in their brokerage accounts as part of a conversion that happens between Sept. 8 and Dec. 7. [Note: We couldn't find any notices from Schwab on this.] The Westlake, Texas firm informed its millions of investors today (Aug. 8) that sweep cash will remain in brokerage accounts, where it will be insured by the Securities Investor Protection Corporation (SIPC)."
It continues, "No fees aside, SIPC coverage is not the same as FDIC insurance, says Ben Cruikshank, President & Chief Commercial Officer at Flourish Financial, which builds custom solutions for advisors. 'SIPC is unquestionably a lower level of protection than FDIC,' he says by email. 'FDIC is the gold standard.' Schwab offered no explanation for the change, and did not respond to a query for comment."
The article says, "But Will Trout, senior analyst with Datos Insights, says the move makes sense because it may improve the profitability of the company by lowering costs. 'Schwab is making this change to improve its own economics by holding cash directly as a broker-dealer obligation rather than depositing it at partner banks, which lowers the firm's cost of capital and borrowing costs.,' he says by email."
They quote, "'Schwab One Interest is not a bank account, is not a money market fund, and is not FDIC-insured,' it states. 'Cash held in the Schwab One Interest feature is eligible for up to $250,000 in SIPC protection. SIPC provides up to $500,000 of protection for brokerage accounts held in each separate capacity (e.g., individual or joint tenant), with a limit of $250,000 for claims of uninvested cash balances.... Unlike the FDIC, SIPC does not provide blanket coverage.'"
The update adds, "If history is a guide, Schwab's competitors could follow with like moves to stay competitive on economics though that apparently has not happened yet. 'This appears to be Schwab-specific; Fidelity and Pershing have not announced similar moves,' Trout says. Fidelity declined to comment in response to a query asking for a reaction to Schwab's change and whether it had a similar change in the works."
Finally, it concludes, "In a footnote of the notification, Schwab makes the SIPC difference explicit: 'Brokerage products and services (including unswept or intra-day cash, net credit or debit balances, and money market funds) offered by Charles Schwab & Co., Inc. (Member SIPC) are not deposits or obligations of the Program Banks, are subject to investment risk, are not FDIC insured, may lose value, and are not Program Bank-guaranteed.'"
Crane Data's August Money Fund Portfolio Holdings, with data as of July 31, 2026, show that holdings of Treasuries jumped while Repo declined. Money market securities held by Taxable U.S. money funds (tracked by Crane Data) decreased by $8.7 billion to $8.212 trillion in July, after decreasing $4.9 billion in June but increasing $255.9 billion in May. Assets decreased by $105.9 billion in April and $103.0 billion in March. Taxable assets increased $113.2 billion in February, but they decreased $54.6 billion in January. Treasuries, the largest portfolio composition segment, increased by $150.2 billion. Repo, the second largest segment, decreased $148.0 billion in July. Agencies were the third largest segment, and CP remained fourth, ahead of CDs, Other/Time Deposits and VRDNs. Below, we review our Money Fund Portfolio Holdings statistics. (Visit our Content center to download, or contact us to request our latest Portfolio Holdings reports.)
Among taxable money funds, Treasury securities increased $150.2 billion (4.6%) to $3.428 trillion, or 41.7% of holdings, after decreasing $95.7 billion in June and increasing $218.9 billion in May. Repurchase Agreements (repo) decreased by $148.0 billion (-4.8%) to $2.912 trillion, or 35.5% of holdings, in July, after increasing $68.0 billion in June and $17.9 billion in May. Government Agency Debt was up $5.9 billion, or 0.5%, to $1.208 trillion, or 14.7% of holdings. Agencies increased $13.8 billion in June and $4.6 billion in May. Repo, Treasuries and Agency holdings now total $7.547 trillion, representing 91.9% of all taxable holdings.
Money fund holdings of CP, CDs and Other (mainly Time Deposits) all fell in July. Commercial Paper (CP) decreased $3.6 billion (-1.2%) to $300.0 billion, or 3.7% of holdings. CP holdings increased $6.2 billion in June and $11.3 billion in May. Certificates of Deposit (CDs) decreased $3.8 billion (-1.8%) to $205.8 billion, or 2.5% of taxable assets. CDs increased $6.4 billion in June and $0.7 billion in May. Other holdings, primarily Time Deposits, decreased $9.5 billion (-6.3%) to $140.8 billion, or 1.7% of holdings, after decreasing $3.9 billion in June and increasing $2.5 billion in May. VRDNs were flat at $17.4 billion, or 0.2% of assets. (Note: This total is VRDNs for taxable funds only. We will post our Tax Exempt MMF holdings separately Wednesday around noon.)
Prime money fund assets tracked by Crane Data decreased to $1.372 trillion, or 16.7% of taxable money funds' $8.212 trillion total. Among Prime money funds, CDs represent 15.0% (down from 15.2% a month ago), while Commercial Paper accounted for 21.9% (down from 22.0% a month ago). The CP totals are comprised of: Financial Company CP, which makes up 12.1% of total holdings, Asset-Backed CP, which accounts for 7.4%, and Non-Financial Company CP, which makes up 2.3%. Prime funds also hold 0.7% in US Govt Agency Debt, 12.8% in US Treasury Debt, 14.3% in US Treasury Repo, 1.5% in Other Instruments, 7.0% in Non-Negotiable Time Deposits, 12.0% in Other Repo, 13.5% in US Government Agency Repo and 1.0% in VRDNs.
Government money fund portfolios totaled $4.358 trillion (53.1% of all MMF assets), down from $4.422 trillion in June, while Treasury money fund assets totaled another $2.476 trillion (30.2%), up from $2.390 trillion the prior month. Government money fund portfolios were made up of 27.4% US Govt Agency Debt, 17.9% US Government Agency Repo, 31.6% US Treasury Debt, 22.6% in US Treasury Repo, 0.3% in Other Instruments. Treasury money funds were comprised of 75.7% US Treasury Debt and 24.3% in US Treasury Repo. Government and Treasury funds combined now total $6.834 trillion, or 83.2% of all taxable money fund assets.
European-affiliated holdings (including repo) increased by $106.4 billion in July to $747.9 billion; their share of holdings rose to 9.1% from last month's 7.8%. Eurozone-affiliated holdings increased to $515.6 billion from last month's $473.7 billion; they now account for 6.3% of overall taxable money fund holdings. Asia & Pacific related holdings were up at $346.0 billion (4.2% of the total) from last month's $338.9 billion. Americas related holdings decreased to $7.114 trillion from last month's $7.234 trillion; they now represent 86.6% of holdings.
The overall taxable fund Repo totals were made up of: US Treasury Repurchase Agreements (down $112.2 billion, or -5.9%, to $1.781 trillion, or 21.7% of assets); US Government Agency Repurchase Agreements (down $32.1 billion, or -3.2%, to $966.4 billion, or 11.8% of total holdings), and Other Repurchase Agreements (down $3.7 billion, or -2.2%, to $165.2 billion, or 2.0% of holdings). The Commercial Paper totals were comprised of Financial Company Commercial Paper (down $8.5 billion to $166.1 billion, or 2.0% of assets), Asset-Backed Commercial Paper (down $2.8 billion to $101.7 billion, or 1.2%), and Non-Financial Company Commercial Paper (up $7.7 billion to $32.1 billion, or 0.4%).
The 20 largest Issuers to taxable money market funds as of July 31, 2026, include: the US Treasury ($3.428T, 41.7%), Fixed Income Clearing Corp ($1.056T, 12.9%), Federal Home Loan Bank ($860.5B, 10.5%), JP Morgan ($334.1B, 4.1%), Federal Farm Credit Bank ($211.4B, 2.6%), Citi ($204.6B, 2.5%), Wells Fargo ($171.2B, 2.1%), BNP Paribas ($167.5B, 2.0%), RBC ($148.5B, 1.8%), Bank of America ($105.4B, 1.3%), Barclays PLC ($104.3B, 1.3%), Goldman Sachs ($103.1B, 1.3%), Credit Agricole ($99.3B, 1.2%), Sumitomo Mitsui Banking Corp ($80.3B, 1.0%), the Federal National Mortgage Association ($72.3B, 0.9%), Mitsubishi UFJ Financial Group Inc ($62.2B, 0.8%), the Federal Home Loan Mortgage Corp ($57.8B, 0.7%), Societe Generale ($55.7B, 0.7%), Canadian Imperial Bank of Commerce ($54.6B, 0.7%) and Toronto-Dominion Bank ($54.3B, 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 ($1.037T, 35.6%), JP Morgan ($322.8B, 11.1%), Citi ($200.8B, 6.9%), BNP Paribas ($159.5B, 5.5%), Wells Fargo ($158.4B, 5.4%), RBC ($108.4B, 3.7%), Goldman Sachs ($99.2B, 3.4%), Credit Agricole ($81.6B, 2.8%), Barclays PLC ($78.9B, 2.7%) and Bank of America ($78.2B, 2.7%).
The 10 largest issuers of "credit" -- CDs, CP and Other securities (including Time Deposits and Notes) combined -- include: RBC ($40.1B, 7.1%), Toronto-Dominion Bank ($31.3B, 5.5%), Bank of America ($27.3B, 4.8%), Barclays PLC ($25.4B, 4.5%), Mizuho Corporate Bank Ltd ($23.2B, 4.1%), Mitsubishi UFJ Financial Group Inc ($21.4B, 3.8%), ING Bank ($20.8B, 3.7%), Australia & New Zealand Banking Group Ltd ($20.2B, 3.6%), Fixed Income Clearing Corp ($19.3B, 3.4%) and Credit Agricole ($17.7B, 3.1%).
The 10 largest CD issuers include: Toronto-Dominion Bank ($16.4B, 8.0%), Mitsubishi UFJ Financial Group Inc ($13.5B, 6.6%), Wells Fargo ($12.4B, 6.0%), Sumitomo Mitsui Banking Corp ($11.1B, 5.4%), Sumitomo Mitsui Trust Bank ($10.8B, 5.3%), Credit Agricole ($10.7B, 5.2%), Barclays PLC ($10.6B, 5.2%), Bank of Nova Scotia ($8.6B, 4.2%), Bank of America ($8.5B, 4.1%) and Mizuho Corporate Bank Ltd ($8.2B, 4.0%).
The 10 largest CP issuers (we include affiliated ABCP programs) include: RBC ($25.6B, 9.5%), Toronto-Dominion Bank ($15.0B, 5.6%), Barclays PLC ($14.3B, 5.3%), JP Morgan ($11.3B, 4.2%), ING Bank ($9.1B, 3.4%), National Bank of Canada ($9.0B, 3.3%), Capitolis Inc ($8.8B, 3.3%), Bank of Montreal ($8.6B, 3.2%), Mitsubishi UFJ Financial Group Inc ($7.9B, 3.0%) and Bank of Nova Scotia ($7.8B, 2.9%).
The largest increases among Issuers include: the US Treasury (up $150.2B to $3.428T), Barclays PLC (up $48.4B to $104.3B), Goldman Sachs (up $26.5B to $103.1B), Citi (up $25.1B to $204.6B), Societe Generale (up $17.0B to $55.7B), Credit Agricole (up $15.7B to $99.3B), BNP Paribas (up $15.5B to $167.5B), Bank of America (up $12.8B to $105.4B), Mizuho Corporate Bank Ltd (up $10.4B to $48.9B) and HSBC (up $9.9B to $37.2B).
The largest decreases among Issuers of money market securities (including Repo) in July were shown by: Fixed Income Clearing Corp (down $231.4B to $1.056T), RBC (down $82.2B to $148.5B), JP Morgan (down $21.4B to $334.1B), Bank of Montreal (down $9.6B to $50.7B), Sumitomo Mitsui Banking Corp (down $7.8B to $80.3B), ING Bank (down $3.9B to $29.2B), Bank of Nova Scotia (down $3.4B to $34.4B), Natixis (down $2.7B to $30.6B), Wells Fargo (down $2.7B to $171.2B) and Sumitomo Mitsui Trust Bank (down $2.6B to $14.7B).
The United States remained the largest segment of country-affiliations; it represents 82.3% of holdings, or $6.756 trillion. France (4.5%, $365.9B) was in second place, while Canada (4.4%, $358.2B) ranked third. Japan (3.3%, $268.6B) occupied fourth place. The United Kingdom (2.2%, $182.2B) remained in fifth place. Australia (0.7%, $57.8B) was sixth, followed by Netherlands (0.6%, $50.7B), Germany (0.6%, $48.9B), Spain (0.6%, $44.9B), and Sweden (0.3%, $24.1B). (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, 2026, Taxable money funds held 46.9% (down from 48.3%) of their assets in securities maturing Overnight, and another 10.1% maturing in 2-7 days (down from 10.4%). Thus, 56.9% in total matures in 1-7 days. Another 10.3% matures in 8-30 days, while 12.3% matures in 31-60 days. Note that over three-quarters, or 79.4% 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 6.0% of taxable securities, while 9.3% matures in 91-180 days, and just 5.2% matures beyond 181 days.
Crane Data's latest monthly Money Fund Portfolio Holdings statistics will be sent out Tuesday, and we'll be writing our regular monthly update on the new July data for Wednesday's News. But we also already uploaded a separate and broader Portfolio Holdings data set based on the SEC's Form N-MFP filings on Monday. (We continue to merge the two series, and the N-MFP version is now available via our Portfolio Holdings file listings to Money Fund Wisdom subscribers.) Our new N-MFP summary, with data as of July 31, includes holdings information from 1010 money funds (unchanged from last month), representing assets of $8.381 trillion (up from $8.364 trillion a month ago). Prime MMFs rose to $1.242 trillion (up from $1.241 trillion), or 14.8% 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 fell to $21.7 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 $3.433 trillion (up from $3.257 trillion), or 41.0% of all assets, while Repo holdings fell to $2.919 trillion (down from $3.067 trillion), or 34.8% of all holdings. Government Agency securities total $1.211 trillion (up from $1.203 trillion), or 14.5%. Holdings of Treasuries, Government agencies and Repo (almost all of which is backed by Treasuries and agencies) combined total $7.563 trillion, or a massive 90.2% of all holdings.
The Other category (primarily Time Deposits) totals $149.5 billion (down from $159.2 billion), or 1.8%, and Commercial Paper (CP) totals $309.8 billion (down from $313.9 billion), or 3.7% of all holdings. Certificates of Deposit (CDs) total $205.4 billion (down from $208.8 billion), 2.5%, and VRDNs account for $153.0 billion (down from $154.5 billion), or 1.8% of money fund securities.
Broken out into the SEC's more detailed categories, the CP totals were comprised of: $166.0 billion, or 2.0%, in Financial Company Commercial Paper; $101.1 billion, or 1.2%, in Asset Backed Commercial Paper; and $42.6 billion, or 0.5%, in Non-Financial Company Commercial Paper. The Repo totals were made up of: U.S. Treasury Repo ($1.793 trillion, or 21.4%), U.S. Govt Agency Repo ($956.5 billion, or 11.4%) and Other Repo ($169.5 billion, or 2.0%).
The N-MFP Holdings summary for the Prime Money Market Funds shows: CP holdings of $254.9 billion (up from $254.5 billion), or 20.5%; Repo holdings of $511.4 billion (up from $501.1 billion), or 41.2%; Treasury holdings of $174.8 billion (down from $179.1 billion), or 14.1%; CD holdings of $177.5 billion (down from $179.0 billion), or 14.3%; Other (primarily Time Deposits) holdings of $101.8 billion (down from $106.9 billion), or 8.2%; Government Agency holdings of $9.0 billion (up from $7.8 billion), or 0.7%; and VRDN holdings of $13.0 billion (up from $12.8 billion), or 1.0%.
The SEC's more detailed categories show CP in Prime MMFs made up of: $147.6 billion (down from $151.2 billion), or 11.9%, in Financial Company Commercial Paper; $79.1 billion (down from $81.4 billion), or 6.4%, in Asset Backed Commercial Paper; and $28.2 billion (up from $21.9 billion), or 2.3%, in Non-Financial Company Commercial Paper. The Repo totals include: U.S. Treasury Repo ($182.9 billion, or 14.7%), U.S. Govt Agency Repo ($178.1 billion, or 14.3%), and Other Repo ($150.5 billion, or 12.1%).
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 0.36%, respectively, as of July 31, 2026. Crane Data revises its monthly expense data and gross yield information after the SEC updates its latest Form N-MFP data the morning of the 6th business day of the new month. (They posted this info Monday morning, so we revised our monthly MFI XLS spreadsheet and historical craneindexes.xlsx averages file to reflect the latest expenses, gross yields, portfolio composition and maturity breakout.) Visit our "Content" page for the latest files.
Our Crane 100 Money Fund Index, a simple average of the 100 largest taxable money funds, shows an average charged expense ratio of 0.26% 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 0.36% as of July 31, 2026, 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 lower among the largest U.S. money fund complexes in July, after being higher in June. Assets have increased in 21 of the past 25 months (April 2025, March 2026, April 2026 and July 2026 saw declines). Money market fund assets fell by $65.5 billion, or -0.8%, last month to $8.290 trillion. Total MMF assets increased by $190.7 billion, or 2.4%, over the past 3 months, and they've increased by $816.9 billion, or 10.9%, over the past 12 months. The largest increases among the 25 largest managers last month were seen by Invesco, JPMorgan, American Funds, UBS and Schwab, which grew assets by $19.7 billion, $14.0B, $9.6B, $4.7B and $3.3B, respectively. Declines in July were seen by Allspring, Vanguard, SSIM, Goldman Sachs and Fidelity, which decreased by $19.2 billion, $17.0B, $15.2B, $12.7B and $12.2B, 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 higher in July.
Over the past year through July 31, 2026, Fidelity (up $161.5B, or 10.4%), JPMorgan (up $153.7B, or 19.4%), SSIM (up $79.7B, or 33.7%), BlackRock (up $69.3B, or 10.7%) and Morgan Stanley (up $59.1B, or 20.9%) were the largest gainers. JPMorgan, Fidelity, Invesco, SSIM and American Funds had the largest asset increases over the past 3 months, rising by $56.9B, $45.3B, $23.8B, $20.8B and $13.4B, respectively. The largest decline over 12 months was seen by: PGIM (down $2.0B), T Rowe Price (down $923M), RBC (down $525M) and Nuveen (down $262M). The largest declines over 3 months included: Allspring (down $8.4B), Federated Hermes (down $5.7B), T Rowe Price (down $3.1B), RBC (down $3.0B) and Vanguard (down $1.7B).
Our latest domestic U.S. Money Fund Family Rankings show that Fidelity Investments remains the largest money fund manager with $1.722 trillion, or 20.8% of all assets. Fidelity was down $12.2B in July, up $45.3B over 3 mos., and up $161.5B over 12 months. JPMorgan ranked second with $943.9 billion, or 11.4% market share (up $14.0B, up $56.9B and up $153.7B for the past 1-month, 3-mos. and 12-mos., respectively). Vanguard ranked in third place with $746.8 billion, or 9.0% of assets (down $17.0B, down $1.7B and up $56.5B). BlackRock ranked fourth with $719.6 billion, or 8.7% market share (down $1.0B, up $11.1B and up $69.3B), while Schwab was the fifth largest MMF manager with $693.8 billion, or 8.4% of assets (up $3.3B, up $7.1B and up $35.7B for the past 1-month, 3-mos. and 12-mos.).
Federated Hermes was in sixth place with $503.6 billion, or 6.1% (down $11.0B, down $5.7B and up $8.6B), while Goldman Sachs was in seventh place with $459.6 billion, or 5.5% of assets (down $12.7B, up $789M and up $42.0B). BNY Dreyfus ($349.8B, or 4.2%) was in eighth place (down $4.7B, up $8.5B and up $45.3B), followed by Morgan Stanley ($341.1B, or 4.1%; down $6.1B, down $955M and up $59.0B). SSIM was in 10th place ($316.1B, or 3.8%; down $15.2B, up $20.8B and up $79.7B).
The 11th through 20th-largest U.S. money fund managers (in order) include: Allspring ($216.4B, or 2.6%), Northern ($208.3B, or 2.5%), First American ($202.8B, or 2.4%), Invesco ($188.0B, or 2.3%), American Funds ($167.4B, or 2.0%), UBS ($121.4B, or 1.5%), HSBC ($51.8B, or 0.6%), T Rowe Price ($48.3B, or 0.6%), Franklin Templeton ($47.6B, or 0.6%) and DWS ($45.2B, or 0.5%). Crane Data currently tracks 64 U.S. MMF managers, unchanged from last month.
When European and "offshore" money fund assets -- those domiciled in places like Ireland, Luxembourg and the Cayman Islands -- are included, the top 10 managers are the same as the domestic list, except: BlackRock moves up to the No. 3 spot and Vanguard moves down to the No. 4 spot. Goldman Sachs moves up to the No. 6 spot, while Federated Hermes moves down to the No. 7 spot. Morgan Stanley moves up to the No. 8 spot while BNY 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 ($1.748 trillion), JP Morgan ($1.261 trillion), BlackRock ($1.076 trillion), Vanguard ($746.8B) and Schwab ($693.8B). Goldman Sachs ($639.0B) was in sixth, Federated Hermes ($522.7B) was seventh, followed by Morgan Stanley ($459.2B), BNY Dreyfus ($415.3B) and SSIM ($373.3B), 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 7/31/26, shows that yields were up in July across most of the Crane Money Fund Indexes. The Crane Money Fund Average, which includes all taxable funds covered by Crane Data (currently 758), was 3.39% (up 3 bps) for the 7-Day Yield (annualized, net) Average, the 30-Day Yield was up 1 bp to 3.37%. The MFA's Gross 7-Day Yield was at 3.75% (up 3 bps), and the Gross 30-Day Yield was up 1 bp at 3.73%. (Gross yields will be revised once we download the SEC's Form N-MFP data for 7/31/26 on Monday.)
Our Crane 100 Money Fund Index shows an average 7-Day (Net) Yield of 3.50% (up 3 bps) and an average 30-Day Yield at 3.47% (up 1 bp). The Crane 100 shows a Gross 7-Day Yield of 3.76% (up 3 bps), and a Gross 30-Day Yield of 3.74% (up 1 bp). Our Prime Institutional MF Index (7-day) yielded 3.61% (up 2 bps) as of July 31. The Crane Govt Inst Index was at 3.48% (up 3 bps) and the Treasury Inst Index was at 3.48% (up 4 bps). Thus, the spread between Prime funds and Treasury funds is 13 basis points, and the spread between Prime funds and Govt funds is 13 basis points. The Crane Prime Retail Index yielded 3.37% (up 1 bp), while the Govt Retail Index was 3.21% (up 3 bps), the Treasury Retail Index was 3.24% (up 4 bps from the month prior). The Crane Tax Exempt MF Index yielded 2.13% (down 20 bps) at the end of July.
Gross 7-Day Yields for these indexes to end July were: Prime Inst 3.85% (up 2 bps), Govt Inst 3.73% (up 3 bps), Treasury Inst 3.75% (up 4 bps), Prime Retail 3.85% (up 1 bp), Govt Retail 3.73% (up 3 bps) and Treasury Retail 3.75% (up 4 bps). The Crane Tax Exempt Index fell to 2.52% (down 20 bps). The Crane 100 MF Index returned on average 0.29% over 1-month, 0.87% over 3-months, 1.95% YTD, 3.72% over the past 1-year, 4.50% over 3-years annualized, 3.50% over 5-years, and 2.23% over 10-years.
The total number of funds, including taxable and tax-exempt, was up 2 in July at 869. There are currently 758 taxable funds, up 2 from the previous month, and 111 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.)
The August issue of our flagship Money Fund Intelligence newsletter, which was sent to subscribers Friday morning, features the articles: "Tokenized MMF Launches Proliferate: BlackRock, Aviva," which reviews the latest tokenized money fund launches; "Quarterly Earnings Calls Quiet on Money Fund, Cash News," which discusses Q2'26 earnings discussions on cash, deposits and sweeps; and "Federated's Donahue on MF Market Share, Digital, Rates," which quotes Federated Hermes' latest earnings call. We also sent out our MFI XLS spreadsheet Friday a.m., and we've updated our Money Fund Wisdom database with 7/31/26 data. Our August Money Fund Portfolio Holdings are scheduled to ship on Tuesday, Aug. 11, and our August Bond Fund Intelligence is scheduled to go out on Friday, Aug. 14. (Note: Please join us for our upcoming European Money Fund Symposium, which will take place next month -- Sept. 24-25 in Paris, France!)
MFI's "Tokenized MMF Launches" story says, "A press release, 'BlackRock Expands Tokenized Cash Platform with BSTBL On-Chain Shares and BRSRV,' tells us, 'BlackRock expanded its cash management strategy with the launch of two tokenized money market products: On-Chain Shares of the BlackRock Select Treasury Based Liquidity Fund ('BSTBL') and the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle ('BRSRV'). The new products combine BlackRock's money market capabilities with blockchain-based infrastructure while maintaining the liquidity and stability, investors expect from regulated money market funds.'"
It continues, "Jon Steel, Global Head of Product and Platform for BlackRock Cash Management, comments, 'Cash remains a foundational building block for investors, corporations, and financial institutions. U.S. money market funds have grown to more than $8.4 trillion in assets as investors continue to prioritize liquidity, capital preservation, and the potential for yield. As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice in how they access and use money market fund investment solutions across traditional and digital markets.'"
We write in our "Quarterly Earnings" article, "The latest quarterly earnings season has been lighter than usual with mentions of money market funds and 'cash.' On Charles Schwab's Q2'26 Summer Business Update, CFO Michael Verdeschi tells analysts, 'Bank deposit account fees grew 35% year-over-year due to continued improvement in the net yield, other revenue was up 32% versus 2Q 2025, with stronger trading volumes as well as typical second quarter seasonality.... Client cash followed typical seasonal trends, including tax payments in April. While strong equity markets lifted sentiment and supported elevated trading activity, transactional sweep cash increased by $24.2 billion in 2Q, largely driven by demand for long-short strategies as well as organic asset gathering. Beyond the growth related to long-short, client cash trends remain strong with year-to-date underlying cash performing better than our initial expectations coming into the year.'"
The story continues, "During the Q&A, he responds on rates, 'Keep in mind that we'll have to see how the rate path plays out. Right now we were assuming one hike. That hike was for the December meeting so you're not seeing that incremental pickup in 2026. If that hike were to occur it's going to be impacting the financials in 2027. No, we feel good about the net interest margin expansion that we've seen so far. If rates resume a hiking pattern, you'll see even more expansion <b:>`_…. We continue to see cash build organically as well. `Again, we've seen growth in the first half of the year despite the seasonality of Q1 and Q2.'"
Our "Federated's Donahue" article says, "Federated Hermes CEO Chris Donahue comments on their Q2'26 earnings call, 'Total money market assets decreased by $7.9 billion or about 1%. Money market funds decreased by $2.9 billion or 1% from Q1, yet were up almost $32 billion or 7% year-over-year. After ending 2025 at a record high of $508 billion, money market fund assets have decreased slightly over the first half of the year to $500 billion at the end of Q2. Money market separate accounts decreased by about $5 billion or 3%, similar to last year's Q2 decrease of $5.8 billion.'"
It states, "Donahue continues, 'Still, these assets were up about $10 billion or 6.4% year-over-year at the end of Q2. Money market separate account assets are impacted by the liquidity levels of the large state pools that we manage and typically peak with tax collections at year-end through mid-April before decreasing in Q2 and Q3. Our estimate of money market mutual fund market share, including sub-advised funds, was about 6.7% at the end of Q2, down from 6.9% at the end of Q1.'"
MFI also includes the News brief, "MMF Assets Drop in July, Dip Back Below $8.3 Trillion." It says, "Our MFI XLS shows MMF assets falling $65.6 billion in July to $8.290 trillion, after hitting a record $8.404 trillion in June. ICI's 'Money Market Fund Assets' shows MMFs rebounding $55.4 billion to $7.909 trillion in the latest week (ended 8/5)."
Another News brief, "BNY Debuts BLIQUID Tokenized MF," says, "A release, 'BNY Investments Launches Its First Native Blockchain Product, BLIQUID by BNY,' states, 'BNY Investments Dreyfus ... announced the launch of BNY Dreyfus On-Chain Liquidity Fund, one of the first digitally native, SEC-registered 2a-7 money funds.'"
A third News brief, "Bloomberg: Money Funds Shorten," tells us, "Bloomberg writes that, 'Money Funds Keep Cash Closer as Fed Leaves Markets Guessing.' The article tells us, 'Money market funds are shifting toward ultra short-term holdings and away from assets with even modest interest-rate risk as uncertainty grows over the Fed's policy path and the near-term outlook for rates. The weighted average maturity of fund holdings has fallen to 40 days from 45 days in mid-May, according to Crane Data. Managers have directed more cash into overnight repurchase agreements and short-dated securities, while increasing allocations to floating-rate agency and Treasury debt. Exposure to T-bills has edged lower even as the government ramps up issuance.' See also, Reuters' 'US money market funds turn defensive with Fed rate outlook uncertain.'"
A sidebar, "Stablecoin Reserves Recap," says, "Mutual fund news source ignites published, 'Fund Shops Race to Launch Stablecoin Reserve Money Funds,' which tells us, 'Traditional asset managers are rolling out a wave of government money market funds tailored specifically to stablecoin reserves, positioning themselves to capture institutional cash ahead of expected regulatory mandates. Firms including Morgan Stanley, State Street, BNY and Goldman Sachs have launched products over the past several months.'"
Our August MFI XLS, with July 31 data, shows total assets falling $65.6 billion to $8.290 trillion, after increasing $49.5 billion in June and $193.2 billion in May. They decreased $102.1 billion in April and $56.6 billion in March, but increased $94.0 billion in February. Assets rose $38.5 billion in January, $123.5 billion in December, $129.3 billion in November, $141.5 billion in October, $100.4 billion in September, and $129.9 billion last August.
Our broad Crane Money Fund Average 7-Day Yield was up 3 bps at 3.39%, and our Crane 100 Money Fund Index (the 100 largest taxable funds) was up 3 bps at 3.50% in July. On a Gross Yield Basis (7-Day) (before expenses are taken out), the Crane MFA and the Crane 100 averaged 3.75% and 3.76%. Charged Expenses averaged 0.36% and 0.26% for the Crane MFA and the Crane 100. (We'll revise expenses once we upload the SEC's Form N-MFP data for 7/31/26 on Monday, 8/10.) The average WAM (weighted average maturity) for the Crane MFA was 38 days (down 1 day) and the Crane 100 WAM was down 1 day from the previous month at 40 days. (See our Crane Index or craneindexes.xlsx history file for more on our averages.)
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 higher in the latest reported quarter (Q4'25) at $426 billion (up from $414 billion in Q3'25 and up from $358 billion in Q4'24). We also again briefly review the SEC's "Amendments to Form PF Reporting Requirements for Large Liquidity Fund Advisers" which went into effect over two years ago, below.
The SEC's "Introduction" tells us, "This report provides a summary of recent private fund industry statistics and trends, reflecting data collected from Form PF and Form ADV filings received through July 03, 2026, for the reporting periods from Fourth Calendar Quarter 2023 through Fourth Calendar Quarter 2025.... 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 2025," with the most recent data available, show 78 Liquidity Funds (most of which are "Section 3 Liquidity Funds," which are Liquidity Funds from advisers with over $1 billion total in cash), up 4 from last quarter and up 4 from a year ago. (There are 56 Section 3 Liquidity Funds out of the 78 Liquidity Funds.) The SEC receives Form PF reports from 38 Liquidity Fund advisers (23 of which are Section 3 Liquidity Fund advisers), up 4 from last quarter and up 4 from a year ago.
The SEC's table on "Aggregate Private Fund Net Asset Value" shows total Liquidity Fund assets at $426 billion, up $12 billion from Q3'25 and up $68 billion from a year ago (Q4'24). Of this total, $424 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 $432 billion, up $12 billion from Q3'25 and up $63 billion from a year ago (Q4'24). Of this total, $430 billion is in Section 3 (large manager) Liquidity Funds.
A table on "Beneficial Ownership for Section 3 Liquidity Funds" shows $118 billion is held by Unknown Non-U.S. Investors (27.9%), $71 billion is held by Other (16.7%), $65 billion is held by Private Funds (15.3%), $29 billion is held by SEC-Registered Investment Companies (6.9%), $14 billion is held by Insurance Companies (3.2%), $13 billion is held by Pension Plans (3.0%), $4 billion is held by Non-U.S. Individuals (1.0%) and $4 billion is held by Non-Profits (0.9%).
The tables also show that 59.7% of Section 3 Liquidity Funds have a liquidation period of one day, $402 billion of these funds may suspend redemptions, and $365 billion of these funds may have gates. WAMs average a short 34.0 days (45.1 days when weighted by assets), WALs are 51.7 days (67.4 days when asset-weighted), and 7-Day Gross Yields average 4.1% (3.9% asset-weighted). Daily Liquid Assets average about 55.6% (47.1% asset-weighted) while Weekly Liquid Assets average about 60.6% (59.6% 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."
Mutual fund news source ignites published an article late last week titled "Fund Shops Race to Launch Stablecoin Reserve Money Funds," which tells us, "Traditional asset managers are rolling out a wave of government money market funds tailored specifically to stablecoin reserves, positioning themselves to capture institutional cash ahead of expected regulatory mandates. Firms including Morgan Stanley, State Street, BNY and Goldman Sachs have launched products over the past several months aimed directly at digital asset issuers. The Guiding and Establishing National Innovation for U.S. Stablecoins, or Genius, Act, which passed last year, mandated that [U.S. domiciled] stablecoin issuers back their tokens with highly liquid, low-risk assets like cash, overnight repurchase agreements and U.S. Treasurys." (Note: Please join us for our upcoming European Money Fund Symposium conference, which will be held Sept. 24-25 in Paris, France!)
They explain, "The immediate commercial case for these vehicles remains an open question. The underlying portfolios hold basic short-term government debt, and a single product -- the $61.9 billion Circle Reserve Fund, managed by BlackRock -- controls nearly 90% of the $69.1 billion, 15-fund stablecoin reserve money market fund space, according to Crane Data. From a legal and portfolio management perspective, stablecoin reserve funds are virtually indistinguishable from standard government money market funds."
The article continues, "Launching a registered money market fund to serve as a Genius Act reserve vehicle does not require special Securities and Exchange Commission exemptive relief, said Jamie Gershkow, partner-in-charge at Stradley Ronon's New York office. The funds still meet the definition of a government money market fund under Rule 2a-7, permitting the use of amortized cost valuation and exempting them from liquidity fee provisions, she noted. The primary structural difference is a tighter maturity cap. While standard 2a-7 funds can hold individual government securities maturing in up to 397 days, Genius Act-compliant funds must restrict their universe to Treasurys maturing in 93 days or less, Gershkow said."
The ignites piece says, "Further, data shows asset managers are not using the digital asset positioning to hike fees. Stablecoin reserve money market funds charge an average expense ratio of 16 basis points, compared to 24 bp across all institutional government money funds, according to Crane Data. 'While most no doubt think they will get future stablecoin money, it's a cheap and easy way to put a high-tech sheen on their fund lineups and companies,' Peter Crane, president of Crane Data, wrote in an email. Despite the flurry of new products, the stablecoin reserve market currently operates as a near-monopoly. Tether and Circle account for roughly 90% of the $300 billion global stablecoin market."
It adds, "Meanwhile, newly launched funds from legacy managers are sitting on minimal seed capital, Crane Data shows. State Street's Capital stablecoin reserve fund held $120 million as of late July, while the Goldman Sachs fund held $104 million, BNY's Dreyfus fund held $51 million and Morgan Stanley held $5 million, according to Crane Data. The strategy of launching stand-alone funds without pre-committed stablecoin partners relies heavily on looming regulatory mandates, industry attorneys say."
Finally, ignites states, "The industry is awaiting final implementing regulations from the Office of the Comptroller of the Currency, which are expected to explicitly address reserve asset diversification, Gershkow noted. If the OCC mandates that stablecoin issuers cannot hold all of their reserves with a single custodian or manager, a forced redistribution of assets will follow. Managers launching 93-day funds today are effectively establishing turnkey wrappers to capture those mandated flows."
In related news, Bloomberg published the piece, "BlackRock Launches Tokenized Money Market Funds in Europe." They explain, "BlackRock Inc. is bringing blockchain technology to its flagship money market funds in Europe, in the latest sign of Wall Street's growing ambition to expand use of digital-asset technology in mainstream finance." (See also yesterday's Crane Data News, "BlackRock Launches BRSRV Tokenized Money Fund; Aviva Tokenized USD.")
They state, "The world's largest asset manager will offer tokenized versions of select existing BlackRock Institutional Cash Series money market funds, which manage a combined $311 billion in assets, the company said in a statement on Tuesday. The offering will include sterling, euro and US-dollar-denominated share classes. Each digital token is equivalent to a share in the underlying money market fund, which investors will be able to transfer around-the-clock, directly between approved digital wallets, the company said."
The article says, "Tokenization is the use of crypto's underlying technology to issue traditional financial assets digitally, with the aim of making them easier and faster to transfer and settle, 24/7. Large financial institutions have ramped up their tokenization efforts over the past year as President Donald Trump's administration has taken a more supportive stance toward digital assets, which has encouraged banks, asset managers and other financial firms to step up their blockchain initiatives. The market value of tokenized assets has surged to roughly $37 billion, according to data provider rwa.xyz."
It tells us, "BlackRock, for one, has seen interest from a range of potential clients, including retail distributors who offer digital wallets, corporate treasurers beginning to use tokenized forms of cash, and capital markets participants looking for more efficient forms of collateral, Beccy Milchem, global head of cash distribution and head of the international cash management business, said in an interview."
Bloomberg comments, "Money market funds have emerged as one of the fastest-growing areas of tokenization. The funds invest in short-term, low-risk securities such as Treasury bills and commercial paper and, unlike stablecoins -- which are cryptocurrencies pegged to assets such as the US dollar -- generate a yield for investors while seeking to maintain a stable value. That has led some firms to position tokenized money market funds as a complementary or alternative way to hold cash equivalents on blockchain networks."
They write, "The latest batch of BlackRock money market funds will be tokenized using JPMorgan's Kinexys blockchain-based platform, the companies said. The bank will also continue to act as a transfer agent for the funds. 'We see it as a real opportunity to modernize market infrastructure and the ability to do peer-to-peer transfers appealed to some corporates as they look at how they do intra-company payments,' Hannah Winter, head of digital cash at BlackRock, said in an interview."
Finally, Bloomberg adds, "BlackRock was an early entrant into the tokenized funds build-out with its BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, which has swelled to about $2.7 billion since debuting in 2024, according to rwa.xyz. Chief Executive Officer Larry Fink has been one of tokenization's most vocal advocates on Wall Street."
A press release, "BlackRock Expands Tokenized Cash Platform with BSTBL OnChain Shares and BRSRV," tells us, "BlackRock expanded its cash management strategy with the launch of two tokenized money market products: OnChain Shares of the BlackRock Select Treasury Based Liquidity Fund ('BSTBL') and the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle ('BRSRV'). The new products combine BlackRock's money market capabilities with blockchain-based infrastructure while maintaining the liquidity and stability, investors expect from regulated money market funds."
Jon Steel, Global Head of Product and Platform for BlackRock Cash Management, comments, "Cash remains a foundational building block for investors, corporations, and financial institutions. U.S. money market funds have grown to more than $8.4 trillion in assets as investors continue to prioritize liquidity, capital preservation, and the potential for yield. As demand grows for high-quality reserve assets to support stablecoins and other tokenized financial products, these funds provide clients with additional choice in how they access and use money market fund investment solutions across traditional and digital markets."
The release explains, "BSTBL introduces a tokenized share class on the Ethereum blockchain of an existing money market fund. The OnChain Shares extend a scaled cash management strategy into a digital format and can be transferred between approved investor wallets, subject to applicable law. BNY serves as a transfer agent and tokenization provider for the BSTBL OnChain Shares."
It continues, "BRSRV is a newly launched tokenized money market fund designed for digitally native institutional investors. The fund includes features such as daily dividend reinvestment and multi-blockchain accessibility and can be used for a range of digital asset use cases, including stablecoin reserve management. Securitize serves as BRSRV's transfer agent and tokenization provider."
The release adds, "Both funds seek current income consistent with liquidity and stability of principal by investing in cash, short-term U.S. Treasury securities, and overnight repurchase agreements backed by U.S. Treasury securities, and the investment strategy of both funds intends to makes them 'eligible reserve assets' for permitted U.S. payment stablecoin issuers under the Guiding and Establishing National Innovation for U.S. Stablecoins Act (the 'GENIUS Act'). BlackRock's Cash Management Group oversees nearly $1.073 trillion in cash strategies for a diverse range of investors, including corporations, banks, foundations, insurance companies, and public funds." (See too, CoinDesk's, "BlackRock expands tokenized cash with new blockchain-based money market offerings.")
In "offshore" news, another press release titled, "Aviva Investors launches tokenised Liquidity Fund share class in partnership with Ripple," states, "Aviva Investors, the global asset management business of Aviva plc, and Ripple, the leading provider of blockchain-based enterprise solutions across traditional and digital finance, have ... announced the successful launch of a tokenised share class of the Aviva Investors US Dollar (USD) Liquidity Fund."
Aviva says, "The tokenised USD Liquidity Fund will be available on the XRP Ledger (XRPL) – a public blockchain built for fast, secure, and low-cost settlement. Investors will benefit from the same investment objective, risk profile, liquidity characteristics and regulatory protections as the conventional fund, alongside enhanced operational features enabled by tokenisation. The tokenised share class launch was also supported by Komainu, a regulated institutional digital asset custodian, alongside Licuido, a digital platform company that helps Asset Management companies to tokenise real world assets. As part of this launch, the new tokenised share class has also been approved by the Central Bank of Ireland (CBI), marking a regulatory first with regards to tokenised fund structures."
They write, "The Fund, which was initially launched in its 'traditional' structure in 2020, targets low-risk returns and daily liquidity by offering investors exposure to high-grade US dollar-denominated short-term debt instruments. The new share class will be available to eligible investors with digital wallets, with all assets held by the fund's custodian, The Bank of New York Mellon. The structure has been designed to operate within existing regulatory frameworks, providing a scalable foundation for future innovation in fund distribution and market infrastructure."
The release states, "The XRPL, will enable Aviva Investors to reliably issue and manage the tokenised share class of the USD Liquidity Fund using fast, secure, low-cost blockchain transactions, in an energy efficient format. It offers a set of features, including compliance capabilities, designed to support financial institutions operating in regulated markets. Since 2012, the network has processed more than 4 billion transactions, supports nearly 8 million active wallets, and is maintained by 130+ independent validators."
Mark Versey, CEO at Aviva Investors, tells us, "We're thrilled to be able to announce the launch of our first fund in the tokenisation space, with the addition of the new tokenised share class for our USD Liquidity Fund. Innovation has always been central to Aviva Investors' heritage, and we believe that tokenisation is a significant development within the investment industry. It is our view that this trend will increase efficiency and ultimately lead to improved client outcomes, and as such it is something we have been keen to develop for a number of months. Our partnership with Ripple has been crucial to this endeavour and we look forward to continuing working together, as we look to further explore the possibilities of tokenised fund structures."
Ripple's Senior VP of Trading and Markets Nigel Khakoo adds, "This is a landmark moment for fund tokenisation. Aviva Investors has demonstrated that it is possible to bring a regulated, institutional-grade tokenised product to market on live infrastructure, with real investor protections in place. The XRP Ledger was built for exactly this kind of application, and we expect this launch to set a strong precedent for other asset managers looking to explore tokenised fund structures."
For more on Tokenized Money Market Funds, see these recent Crane Data News stories: "State Street Q2'26 Earnings Call on Tokenized MMFs, Stablecoin Reserves" (7/20/26), "MMF Assets Plunge to $7.9 Trillion; ICI on Tokenization and Asset Mgmt" (7/17/26), "BlackRock Talks Tokenization on Call" (7/16/26), "S&P Rates Franklin Onchain U.S. Government Money Fund (BENJI) AAAm” (6/25/26), "Fitch Primer on Fund Tokenization" (6/11/26), "Moody's Rates BlackRock BUIDL and Fidelity USD Digital Liquidity AAA" (5/20/26), "JPMAM Launches 2nd Tokenized MMF" (5/14/26), "BlackRock Files for Tokenized MMFs" (5/11/26), "Northern Talks Tokenization, Deposits" (4/22/26), "Earnings: JP Morgan Talks AI Cash Allocation Tool; BNY on Tokenization" (4/20/26), "Invesco to Manage SuperState Tokenized USTB" (3/25/26), "OMFIF on Tokenised Money Funds" (3/18/26), "Federated's Donahue Talks Tokenized Money Funds" (3/17/26), "Northern Trust A.M. Launches Tokenized Treasury Digital Enabled Shares" (3/3/26), "BNP Paribas Debuts Tokenized MMF" (2/23/26), "Western Adds Tokenized MMF Class" (1/14/26), "Boston Fed Paper Examines Vulnerabilities of MM ETFs, Tokenized MMFs" (1/7/26), "More from Irish Funds' Tokenization Paper; Decrypt Explains Stablecoins" (12/29/25), "JPMAM Liquidity Insight: Tokenization Transforming Money Market Funds" (12/24/25), "Amundi Tokenises Shares of EUR MMF" (12/22/25), "JP Morgan Launches Tokenized MMF, My OnChain Net Yield Fund (MONY)" (12/17/25), "Bank for International Settlements Primer on Tokenized Money Funds" (12/2/25), "TD Securities Writes on Stablecoins, Tokenized Money Funds, Digital" (11/5/25), "NY Fed Blog Says Money Funds Dominate Tokenization To Date; Stability?" (9/25/25), "IMMFA on Tokenization of MMFs in Europe; Tether USDT; Fidelity Digital" (9/22/25), and "BNY's LiquidityDirect Portal Announces Plans to Tokenize Money Funds" (7/24/25).
Federated Hermes reported its Second Quarter earnings late Thursday and hosted its Q2'26 earnings call on Friday. CEO Chris Donahue comments, "For Q3 ... turning to fixed income, assets ended Q2 at just over $100 billion, up $689 million.... We had 26 fixed income funds and SMAs with net sales in Q2, led by Core Plus and Core Agg SMA, which combined for $190 million, with three Ultrashort Bond Funds that were up a combined $134 million, and the conservative Muni Micro Short Fund was up almost $100 million.... Fixed income is expected to have net sales of about $300 million, including total return bond, low duration, and high yield."
He says, "Moving on to money markets, total money market assets decreased by $7.9 billion or about 1%. Money market funds decreased by $2.9 billion or 1% from Q1, yet were up almost $32 billion or 7% year-over-year. After ending 2025 at a record high of $508 billion, money market fund assets have decreased slightly over the first half of the year to $500 billion at the end of Q2. Money market separate accounts decreased by about $5 billion or 3%, similar to last year’s Q2 decrease of $5.8 billion."
Donahue continues, "Still, these assets were up about $10 billion or 6.4% year-over-year at the end of Q2. Money market separate account assets are impacted by the liquidity levels of the large state pools that we manage and typically peak with tax collections at year-end through mid-April before decreasing in Q2 and Q3. Our estimate of money market mutual fund market share, including sub-advised funds, was about 6.7% at the end of Q2, down from 6.9% at the end of Q1."
He explains, "Now looking back at the last seven and a half years or so of quarterly money market fund market share changes, we gained share in 14 quarters. We lost share in 14 quarters, with 2 quarters of no change. The average share gain was 0.20. The average share loss was about 0.23. Our money market fund managed assets more than doubled from $208 billion to $500 billion over that period. This is certainly entrepreneurial delight from an owner/operator. Of course, it's important to note that we remain in the top 10 in every category of money market fund managed asset levels in the top 5 in prime and tax-free."
Donahue states, "Now let's talk about digital. Our digital initiatives include the recent launch of Money Market Management Digital Treasury Fund, which is expected to support both traditional and on-chain distribution. The initial Reserve Shares class provides a non-tokenized GENIUS compliance structure geared to institutional investors and stablecoin issuers seeking investments aligned with stablecoin reserve requirements. We are also developing an on-chain share class intended to place official books and records of that share class on blockchain infrastructure as we implement a digital transfer agency model."
He comments, "This dual track approach offers flexibility between traditional and on-chain record-keeping models. We have selectively engaged with regulated digital asset intermediaries focusing on tokenized funds as regulated financial instruments. We've previously discussed our participation in the BNY [LiquidityDirect]/Goldman domestic initiative involving mirrored tokenization and the Archax initiative to offer tokenized assets to a UCITS money market fund in the U.K. We are engaged in the digital asset development discussion with several other intermediaries. These are early-stage efforts. Our clients are currently looking more for digital asset information than transaction ability."
Donahue then says, "We expect our engagements with intermediaries to grow as regulations clarify and as our digital assets platform and product development progress. Now let's look at the recent asset totals as of a few days ago. Managed assets were approximately $899 billion. We should have picked the day before, including $665 billion in money markets, $109 billion in equities, $100 billion in fixed income, $23 billion in alternative private markets, and $3 billion in multi-asset. Money market mutual fund assets were $490 billion. Money market fund assets have ranged from $490 billion-$501 billion during July with average asset levels of $496 billion."
When asked about rates and money fund assets, Donahue responds, "Well, let me comment first. Then I know Debbie's chomping at the bit to get at this one. In terms of the money market fund overall, we've been at this for 50 years. There's all sorts of things that come together, like our rivers in a big confluence, month to month. That's why I went through all those percentages of changes in market share. Because of the seasonality, I think that says for itself that we do expect that seasonality to come back just like it has. All these years we've had these pools. Some other interesting things have happened in the marketplace. One of the big firms offered a sort of a bonus yield program that moved some assets. We had some big clients move. That always happens."
He adds, "As I mentioned in the previous question, we had some ultrashort and people moving out the curve a little bit. With the Fed situation, if it is really higher for longer, i.e., they don't do anything, that's fine with us. Remember, a 3.5% or so yield on a money fund is a great thing. Debbie?"
Cunningham replies, "Thanks, Chris. Yes, I agree, a lot of volatility in the first half of the year. There were some very large market deals that occurred from an IPO standpoint and a long-term debt standpoint, Amazon, Alphabet, Anthropic, SpaceX. They issued large amounts in the marketplace, which subsequently, for a period of time, came into the money market universe, and has subsequently gone out. Still, some of it's left in there. A lot of volatility and noise around the first half of the year. Ultimately, what Chris mentioned with regard to a Warsh-led Fed, that at this point is showing no signs of being in the mode of lowering rates. Keeping rates higher for longer where they are now. The market is actually predicting that the rate environment is increased at the September meeting, which I don't particularly think will be the likely scenario."
She tells us, "Nonetheless, with rates on the short end, somewhere between 3.5% and 4.5% on a yield curve basis over the first half of the year, money market funds look very attractive. Most of the industry, including ourselves, has lowered their weighted average maturities to have some fuel available to light the fire even further. As rates and the yield curve steepen to some degree, floaters are a really good use of investments in these funds during a rising rate environment, and those have been plentiful in the marketplace. Sometimes we like the spread in the floater, sometimes we don't."
Cunningham adds, "All of this really leads us to a conclusion that with rates where they are marginally higher from a steeper yield curve standpoint, the attractiveness of cash and the attractiveness of money market funds, as well as the separate accounts and the pools that we manage, will continue to gather assets as does the industry."
Asked another question on money fund market share, Donahue responds, "That's why I tried to list a whole bunch of confluence of factors that all jump around every single quarter. Debbie talked about all these big IPOs that came out, where the cash came in, then that goes out. Who has more of it than the other guy, then that changes the market share. The movement of some of the clients, the Ultrashort and Conservative Microshort, that does it. You already commented on the one, there's some big retail programs. Then there's just the ebb and flow of cash, and it is volatile. There's nothing that you can do about it. We look for the seasonality, the steady eddy of the program. As I tried to hint in my remarks, we would trade every time to go from $200 billion to $500 billion and have the market share."
