European Asset Manager Amundi Debuts Tokenized Share Class on Ethereum

Core Viewpoint - Amundi has launched a tokenized share class of its euro cash fund to enhance product offerings on distributed ledgers [1] Group 1: Product Development - The Amundi Funds Cash EUR fund now operates in a hybrid model, allowing investors to choose between traditional cash purchases or a tokenized version on Ethereum [2] - The first transaction for the tokenized share class was settled on November 4 [2] - The product was developed in partnership with CACEIS, which provides digital wallets and manages subscriptions and redemptions [2] Group 2: Technology and Benefits - Tokenization transforms fund shares into blockchain-based records, facilitating quicker settlements and clearer audit trails [3] - The fund utilizes distributed ledger technology and the Ethereum blockchain for transparent record-keeping and transaction traceability [3] Group 3: Market Position and Regulation - This development reinforces Europe's lead in regulated tokenized funds, with firms in Luxembourg, France, and Germany having issued blockchain-native fund units for several years [4] - Clear regulatory guidance in these countries has enabled asset managers to hold and record digital shares effectively [4] Group 4: Future Prospects - CACEIS announced that investors will have the option to purchase the fund using stablecoins or central bank digital currencies (CBDCs) [5] - The introduction of a hybrid Transfer Agent service aims to provide a new distribution channel via blockchain for clients [5] - The goal is to offer 24/7 subscription and redemption services for investment fund units payable in stablecoins or CBDCs when available [6]