Schroders launches tokenised fund share class

Schroders has secured regulatory approval for its first tokenised share class of a US dollar money market fund, marking a significant step in the firm’s development of digital investment solutions.

The approval from the Central Bank of Ireland allows Schroders to launch its tokenised share class, named SOAR (Schroders Onchain Active Returns), as the firm responds to growing institutional demand for digital asset infrastructure and more efficient investment processes.

The fund will use Kinexys by J.P. Morgan’s multi-chain asset tokenisation platform, enabling investors to use blockchain-based smart contracts for transactions including redemptions and transfers.

Schroders said the tokenised structure could improve the flexibility and mobility of money market funds by enabling more efficient transfers between investors, while also creating potential future applications including collateralisation and 24/7 treasury and liquidity management.

The launch builds on Schroders’ wider focus on tokenisation and digital assets, following the integration of tokenised capabilities into Schroders Capital’s insurance-linked securities investment platform earlier this year.

The firm has also played a role in industry initiatives exploring digital asset standards, including supporting the Guardian Asset and Wealth Management industry working group alongside the Monetary Authority of Singapore.

Meagen Burnett, Chief Financial Officer at Schroders, said the move reflects the firm’s long-term focus on adapting to technological change.

“By combining money market investments with the benefits of distributed ledger technology, we are offering investors a new level of access, efficiency and security,” she said.