Core Insights - Tokenised money-market funds have reached a $9 billion sector in the crypto market, but the Bank for International Settlements (BIS) has issued early risk warnings regarding their exposure to traditional money-market tensions [1][2][3] Group 1: Market Growth and Potential - Tokenised money-market funds allow investors to earn yield on cash instruments directly on-chain, mirroring traditional money market funds [2] - The sector has experienced significant growth, increasing by 265% over the last year, with predictions of reaching $250 billion in the next three years [4] - Major institutional players such as BlackRock, Franklin Templeton, and UBS are entering the tokenised money market sector, indicating rising institutional interest [5] Group 2: Risks and Concerns - The BIS report highlights that tokenised money-market funds may amplify risks similar to those found in conventional money market funds and stablecoins [2][3] - Integration with decentralized finance (DeFi) could heighten market stresses due to leverage and interconnected protocols, potentially leading to quicker and more damaging market shocks [3] - Proactive measures are necessary to mitigate market risks before they evolve into systemic threats that could impact both crypto and traditional markets [6]

Core Insights - Fnality has raised $136 million in a Series C funding round to expand its DLT-based payment systems beyond the UK Sterling network launched in 2023 [1][2] - The funding round was led by major financial institutions including WisdomTree, Bank of America, and Citi, indicating strong institutional confidence in blockchain-based payment systems [6][7] Company Overview - Fnality aims to create a regulated settlement network that connects traditional financial infrastructure with the emerging world of tokenised assets, offering 24/7 real-time settlement and liquidity optimisation [3][10] - The company launched its first payment system, the Sterling Fnality Payment System (£FnPS), in December 2023, recognized as the world's first regulated DLT-based wholesale payment system [4] Funding and Expansion Plans - The Series C funds will be used to expand Fnality's model to other major currencies and enhance interoperability between stablecoins, tokenised deposits, and institutional tokenised assets [5] - The goal is to establish an institutional-grade settlement layer across capital markets, addressing the need for regulated infrastructure anchored in central bank money [10] Industry Impact - Industry leaders view Fnality as a critical foundation for the tokenised markets, with its systems modernising market structures for faster and more efficient operations [6][8] - The support from a diverse group of institutional investors highlights the growing confidence in blockchain-based wholesale payment systems and their potential to transform financial market infrastructure [7][8] Future Outlook - Fnality's success hinges on balancing innovation with compliance, as each payment system must be supervised by its respective central bank, adding credibility and requiring regulatory collaboration [12] - As financial markets trend towards tokenisation, the demand for settlement layers that combine central bank trust with blockchain speed is expected to increase, positioning Fnality as a foundational element in the future of global finance [13]

Tokenized Assets Impact - Tokenized assets' attractiveness to brokers, customers, and investors will reshape finance [1] - The changes brought by tokenized assets could be both positive and negative for the financial industry [1]