The fund is now a token
A money market fund, turned into a token you hold in a wallet. Less theory, more machinery, with BUIDL and Franklin Templeton as the live examples.
A fund share has always been an entry in a registry, held for you by intermediaries. Tokenizing it does one thing with large consequences: the share becomes a token, and the token is the record. You hold it directly, move it any time, and it settles in seconds.
How the vault works
The flow is short. You deposit a stablecoin, the vault issues the fund token, and the underlying cash buys short-term Treasuries. You redeem back to the stablecoin when you want.
Where the yield comes from
This is a for-profit fund, not a parking lot. It holds Treasuries that pay a real yield, and that return accrues into the token, either by lifting its value or by minting more of it.
The part that is new
A paper share just sits there. A token composes. The same position can back a loan, post as margin, or settle a trade, without ever leaving the yield behind. That is why a treasury fund suddenly matters to people who never bought one.
Who is already live
This is shipping, not theory. BlackRock's BUIDL, with Securitize as transfer agent, is the largest. Franklin Templeton runs its government money fund on-chain with the BENJI token. Ondo packages Treasuries into OUSG and USDY. The tokenized money market is now measured in the tens of billions.
Why it matters
The wrapper is regulated and familiar. The rails are new. Put together, a fund stops being something you subscribe to and wait on, and becomes something you hold, move, and build with. The interesting question is no longer whether funds tokenize. It is what gets built once they do.