Unlocking Capital with U.S. Tokenized Money Market Funds for Collateral Mobility

Global Digital Finance (GDF) and ISDA have published their latest report of Unlocking Capital with U.S. Tokenized Money Market Funds for Collateral Mobility. This report examines how tokenized money market funds (TMMFs) can improve collateral efficiency across U.S. financial markets. Developed through the GDF–ISDA U.S. TMMF Working Group, the report combines legal, regulatory and operational analysis with practical insights from industry-wide testing.

A key component of the report was the U.S. Industry Sandbox, powered by Ownera, which brought together 48 firms as part of a broader industry effort involving 300+ participants across 120+ firms. The Sandbox tested real-world collateral workflows and demonstrated how TMMFs can enhance collateral mobility, support intraday margining and enable near real-time settlement within existing market frameworks. 

Participating organizations included BlackRock, Brown Brothers Harriman, Citi, CME Group, Fidelity Investments, Franklin Templeton, ICE, Invesco, J.P. Morgan Asset Management, State Street, Standard Chartered, U.S. Bank, WisdomTree and many others.

Key findings include:

• Improved collateral mobility across institutions

• More efficient use of liquidity and capital

• Support for intraday margining workflows

• Settlement measured in minutes, not days

• A practical path from industry testing to production deployment

The report provides industry recommendations and operational guidance to support the adoption of tokenized collateral and the modernization of U.S. collateral markets.

Production pilots for the Open Collateral Network are expected to begin in September 2026, with live deployment targeted for Q4 2026.