According to a recent Bank of America research report, the demand for stablecoins for U.S. treasury securities is expected to grow by 25 billion to 75 billion dollars in the next 12 months, but this increase will not significantly change the dynamics of the treasury security market, but will pose a greater competitive challenge to money market funds (MMFs).
Reports show that some MMF clients are actively exploring tokenization as a defense against stablecoin competition. In July, BNY Mellon and Goldman Sachs launched blockchain-based technology to record ownership of specific MMF shares, marking the first successful transfer of tokenized MMF shares.
Due to the fact that stablecoins are currently limited in their ability to pay returns, money market funds face a limited time window to complete their tokenization and provide competitive yields in response to possible future regulatory changes or innovative breakthroughs in the stablecoin industry.
Bank of America: Stablecoins will pose competitive pressure on money market funds
2025-08-21 14:12:10
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