Schroders today announced that it has received regulatory approval for the firm’s first tokenised share class of a US dollar money market fund.

The firm has secured the green light from the Central Bank of Ireland to launch the fund with a tokenised share class, meeting client demand for digital asset solutions and enhanced operational efficiency, the asset manager said in a statement.

The Ireland domiciled fund will be run by Neil Sutherland, head of US fixed income and portfolio manager at Schroders, as well a range of credit specialists.

With the support of Kinexys by JP Morgan’s multi-chain asset tokenisation platform, clients will be able to use smart contracts, which are programs deployed on a blockchain that execute automatically when set conditions are met, to execute secure and transparent transactions, that is, redemptions and transfers.

This enhances the mobility of the money market fund beyond traditional systems, enabling transfers amongst Schroders’ clients and unlocking potential future use cases such as collateralisation and broader 24/7 treasury and liquidity management.

The approval of this tokenised share class follows Schroders Capital’s unveiling of the integration of a tokenised capability into its insurance-linked securities (ILS) investment platform earlier this year.

Meagen Burnett, chief financial officer, Schroders said: ““By combining money market investments with the benefits of distributed ledger technology, we are offering investors a new level of access, efficiency and security.’

Kara Kennedy, global head of market development, Kinexys by J.P. Morgan added: “Tokenised financial infrastructure is no longer theoretical; it’s restructuring liquidity, settlement and digital asset workflows at increasing speed. As demand for tokenised assets grows, tokenised money market funds can help meet investor needs while introducing new features enabled by blockchain technology.

Kinexys by J.P. Morgan is the firm’s blockchain business unit and part of J.P. Morgan Payments. Its multi-chain asset tokenisation solution enables investors to interact with the fund on distributed ledger technology, and offers them access to the operational benefits of a secure, efficient and transparent investment vehicle designed for today’s evolving financial landscape.

The platform acts as the translation layer between on-chain activity and the fund’s transfer agent.