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Tokenization of assets

Institutional Guide

Tokenized Treasuries: On-Chain Cash Management

How tokenized money market and treasury funds work, how yield is distributed on-chain, and what institutions check before parking cash in them.

Why treasuries went first

Short-dated government paper is the easiest real-world asset to tokenize: the valuation is unambiguous, the custody chain already exists, and the buyers are institutions that want settlement speed rather than upside. It is the cleanest application of the mechanics in our tokenization of assets guide.

Accrual vs rebasing

Accrual tokens keep the unit count fixed and let NAV drift upward. Rebasing tokens hold price at one unit and mint balance. The economics are identical; the accounting and tax treatment are not, so pick the model your back office can reconcile.

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Frequently asked questions

› What is a tokenized treasury fund?

A regulated money market or short-duration government bond fund whose units are issued as blockchain tokens. The fund holds the bills; the token is the share register entry that can settle in minutes instead of days.

› How is the yield paid out?

Either by accrual — the token's NAV rises daily — or by rebasing the holder's balance. Accrual tokens are simpler for accounting; rebasing tokens are simpler for wallets that show a flat unit price.

› What should be checked before allocating?

Fund domicile and regulator, custodian and transfer agent, redemption windows and cut-off times, on-chain transfer restrictions, and whether the NAV oracle is independently attested.