Singapore-based fintech firm OpenEden has announced the appointment of BNY as the investment manager and primary custodian for its tokenized U.S. Treasury fund.
BNY Appointment and Its Significance
OpenEden stated that this marks the first time the U.S. bank will provide both investment and custody services to a tokenized fund.
Details of the Tokenized Fund
Launched in 2023, the fund offers investors exposure to short-dated U.S. Treasury bills and overnight reverse repurchase agreements. It currently has nearly $300 million in assets under management.
Growing Interest in Tokenization
The market for tokenization of financial assets, including short-term funds, continues to grow due to faster settlement times and greater transparency for investors. According to Moody’s report, tokenized short-term funds have reached $5.7 billion in assets since 2021.
The collaboration between OpenEden and BNY highlights the growing interest and potential opportunities that tokenization presents within the traditional financial sector.
