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Tokenized Money Market Fund (TMMF)

Low-risk, stable NAV money market fund (MMFR LVNAV). Daily liquidity, KYC-gated, daily NAV updates via oracle push. Target yield ~4.5% (not guaranteed).

Tokenized Money Market Fund (TMMF)

In Plain English

Think of this like a savings account that earns ~4.5% interest. Your money is very safe — it's invested in short-term, low-risk assets like government bonds. The value stays stable at €1.00 per share, and you earn daily interest payments. You can request a withdrawal at any time — actual fiat settlement follows SEPA processing times (T+0 for SEPA Instant). Note: UCITS redemption gates may suspend redemptions during market stress.

Institutional investors gain access to a fractionalized money market fund with daily NAV updates managed by the asset management team. Built on a layered ERC standard stack: ERC-3643/T-REX (permissioned shell with ONCHAINID), ERC-4626 (vault accounting), ERC-7540 (async redemption requests for T+1 settlement), ERC-1643 (prospectus/KID document anchoring). Regulated as a UCITS-compliant LVNAV money market fund under MMFR (EU) 2017/1131, supervised by FSMA under Belgian Law of 11 December 2025.

Industry Reference: How Banks Actually Offer TMMF
BlackRock BUIDL — Uses a customized ERC-20 with built-in whitelist transfer control (NOT ERC-3643). Securitize handles KYC/AML compliance off-chain as the transfer agent. BNY Mellon is custodian and administrator. Multi-chain (Ethereum, Solana, Polygon) via Wormhole. Circle provides instant USDC redemption.
UBS uMINT — Tokenized MMF on Ethereum + Polygon. Uses Chainlink Digital Transfer Agent (DTA) standard for on-chain compliance and transfer management. First in-production tokenized fund using Chainlink DTA.
BNY Mellon + Goldman Sachs — Uses "Fundshare" tokens on Goldman's private blockchain (GS DAP). BNY's LiquidityDirect platform connects for real-time subscription/redemption. Traditional MMF shares mirrored as digital tokens.
JPMorgan Onyx — Handles billions in tokenized short-term investments using blockchain for real-time settlement. Uses permissioned channels for institutional clients.
Key Pattern: Banks use permissioned ERC-20 (whitelist-controlled transfers) with an external compliance layer (Securitize, Chainlink DTA, or proprietary). ERC-3643/T-REX is the emerging open standard for this pattern. ERC-7540 (async redemption) addresses T+1/T+2 settlement windows. ERC-1643 anchors regulatory documents (prospectus, KID) on-chain.

Architecture Flow — TMMF (ERC-4626 Vault)

Standards used: ERC-3643/T-REX (permissioned shell + ONCHAINID), ERC-4626 (vault accounting), ERC-7540 (async redemption), ERC-1643 (prospectus/KID anchoring), FATF Travel Rule (KYC-gated), oracle price feeds (NAV updates).

1
KYC Compliance Check
On-Chain

IdentityRegistry.checkCompliance() — FATF Travel Rule: investor must be verified and accredited to access TMMF vault.

2
NAV Update (Oracle)
Oracle Feed

NAV updated daily via Chainlink-style push oracle: authorized oracle submitter (asset management team) calls updateNAV(newNAV). Circuit breaker: if NAV hasn't been updated in 48 hours, all deposits/redeems freeze automatically. Underlying assets: EU sovereign short-term debt, repo agreements, and investment-grade commercial paper with maturity <397 days, per MMFR Article 10. ERC-4626: getNAV() returns share value.

Oracle Security Note: To prevent NAV manipulation, production uses a multi-source oracle (e.g., Bloomberg + Refinitiv + Chainlink) with time-weighted average price (TWAP) over 5-minute windows. The depositary must sign off on the NAV before it is written on-chain.
3
Yield Distribution
ERC-4626

YieldDistributionEngine accrues yield via ERC-4626 accumulating model. Under MMFR and UCITS, yield distribution requires NAV calculation by a fund administrator and sign-off — the on-chain engine executes only after the depositary confirms the NAV. Yield distributed proportionally to all shareholders.

4
Redeem Shares (ERC-4626)
ERC-4626

ERC-7540 asyncRedeem(shares) — investor requests redemption (T+1 settlement window). ERC-4626 ensures fair value based on current NAV. The async pattern (ERC-7540) is required because vanilla ERC-4626 is synchronous and incompatible with T+1/T+2 fund settlement windows.

1
Investor completes KYC via IdentityRegistry
2
Asset management team updates NAV via oracle
3
YieldDistributionEngine accrues yield automatically
4
Investor redeems shares for pro-rata assets
TMMF → TMF Transition Flow

Investors can transition from low-risk TMMF to higher-risk TMF. This is how banks offer product upselling: start with a safe money market fund, then transition to a higher-yield mutual fund as the investor's risk appetite increases.

①
Investor holds TMMF shares (low risk, stable NAV €1.0000, ~4.5% yield)
②
Investor requests TMF transition via requestTMFTransition(tmfContract, tmmfAmount)
③
TMMF burns shares and TMF contract mints TMF shares based on TMMF NAV
④
Investor now holds TMF shares (higher risk, variable NAV, higher potential yield ~6-8%)
NAV Conversion Example
Investor holds: 100 TMMF shares × €1.0000 NAV = €100.00 value
TMF NAV: €1.0500 (variable, market-driven)
TMF shares received: €100.00 ÷ €1.0500 = 95.24 shares
— Atomic swap in single transaction, no counterparty risk (ERC-3643 transfer restrictions apply)
TMMF (Money Market)
• Low risk, aims to maintain stable NAV (€1.0000)
• Stable NAV (€1.0000)
• ~4.5% annual yield
• Daily liquidity
TMF (Mutual Fund)
• Higher risk, higher return
• Variable NAV (market-driven)
• ~6-8% annual yield (target)
• Redemption T+2 per UCITS rules

Fund Details

Fund Type Money Market Fund (TMMF)
Regulation MMFR 2017/1131 — LVNAV
Minimum Investment €100
MMFR Note: Institutional-grade MMFR LVNAV funds typically require minimum investments of €100K+ for institutional investors. The €100 shown here is for demo purposes only. Under MMFR, eligible assets must be government securities, repos, or high-quality commercial paper with maturity <397 days.
Current NAV €1.0000
NAV Type LVNAV (Low Volatility)
24h NAV Fluctuation ±0.0001%
Daily Yield Accrual ~0.0123%
Annual Yield ~4.5%
Yield Distribution Daily as dividend
NAV Updates Daily oracle push (12:00 CET cutoff)
Transition To TMF (Higher Yield)
Intraday NAV: Unlike traditional MMFs (T+1 NAV), Tokenize TMMF updates NAV intraday via oracle. Orders before 12:00 CET get same-day NAV; after 12:00 CET get next-day NAV.
Yield accrual: ERC-4626 accumulating model — share/asset ratio increases over time as yield accrues. No rebasing, no cash distributions. Your share balance stays the same, but each share is worth slightly more.
Liquidity caveat: Subject to fund prospectus terms and applicable UCITS/AIFMD redemption gates.

NAV Update Simulation

Simulate how the asset management team updates the NAV and distributes yield.

TMMF NAV History (last 50 updates) €1.000000