{"id":43402,"date":"2025-08-21T14:31:47","date_gmt":"2025-08-21T14:31:47","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=43402"},"modified":"2025-08-21T14:31:47","modified_gmt":"2025-08-21T14:31:47","slug":"stablecoins-tokenization-put-pressure-on-money-market-funds-bank-of-america","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=43402","title":{"rendered":"Stablecoins, Tokenization Put Pressure on Money Market Funds: Bank of America"},"content":{"rendered":"<div>\n<p>Bank of America\u2019s (BAC) rates strategy team said the U.S. Treasury market is increasingly shaped by two emerging forces: stablecoin demand for T-bills and the tokenization of government debt-related assets. <\/p>\n<p>BofA views stablecoins as less of a game-changer for Treasuries than for money market mutual funds (MMFs), where their higher-yield potential represents a competitive challenge, the Wall Street bank said in a report Monday.<\/p>\n<p>The bank&#8217;s analysts expects stablecoin demand for Treasury bills to grow gradually, in the order of $25 billion to $75 billion over the next 12 months, but not enough to meaningfully shift bill market dynamics.<\/p>\n<p><a href=\"https:\/\/www.coindesk.com\/learn\/what-is-a-stablecoin\">Stablecoins are cryptocurrencies<\/a> whose value is tied to another asset, such as the U.S. dollar or gold. They play a major role in cryptocurrency markets, providing among other things a payment infrastructure, and are also used to transfer money internationally.<\/p>\n<p>According to BofA, some MMF clients are showing increased interest in tokenization, viewing it as a defensive move against stablecoins. <\/p>\n<p>The report noted that in July, BNY Mellon (BK), alongside Goldman Sachs (GS), <a href=\"https:\/\/www.coindesk.com\/business\/2025\/07\/23\/goldman-sachs-and-bny-mellon-team-up-for-tokenized-money-market-funds\">rolled out blockchain-based technology<\/a> to maintain records of ownership in select MMF shares. <\/p>\n<p>The effort, spurred in part by stablecoin growth and the GENIUS Act, marked the first rollover of tokenized MMF shares.<\/p>\n<p>With stablecoins currently restricted from paying yield, money market funds see a narrow window to tokenize and offer competitive rates before regulatory changes or workarounds erode that advantage, the report added.<\/p>\n<p><strong><em>Read more: <a href=\"https:\/\/www.coindesk.com\/markets\/2025\/07\/24\/stablecoin-supply-to-grow-as-much-as-usd75b-following-passage-of-genius-act-bofa-says\"><span style=\"text-decoration:underline\">Stablecoin Supply to Grow as Much as $75B Following Passage of GENIUS Act, BofA Says<\/span><\/a><\/em><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bank of America\u2019s (BAC) rates strategy team said the U.S. Treasury market is increasingly shaped by two emerging forces: stablecoin demand for T-bills and the tokenization of government debt-related assets. BofA views stablecoins as less of a game-changer for Treasuries than for money market mutual funds (MMFs), where their higher-yield potential represents a competitive challenge, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-43402","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=43402"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/43402\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}