Schroders has received regulatory approval to launch its first tokenised share class for a US dollar money market fund, marking a significant step in its digital asset strategy.
The asset manager said the Central Bank of Ireland had approved the tokenised share class, known as Schroders Onchain Active Returns (SOAR), in response to growing demand from clients for digital investment solutions and greater operational efficiency.
The share class will use Kinexys by J.P. Morgan’s multi-chain asset tokenisation platform, allowing investors to use blockchain-based smart contracts to execute transactions such as fund transfers and redemptions.
Schroders said the technology would enhance the mobility of the money market fund beyond traditional systems and could support future use cases, including collateral management and 24/7 treasury and liquidity management.
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Chief financial officer Meagen Burnett 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.
“This milestone is a testament to our commitment to developing world-class solutions that meet the evolving needs of investors in the digital age.”
Kinexys by J.P. Morgan global head of market development Kara Kennedy said tokenised money market funds could improve liquidity, settlement and digital asset workflows while introducing new functionality enabled by blockchain technology.
The Ireland-domiciled fund will be managed by Neil Sutherland, Schroders’ head of US fixed income, alongside the firm’s credit investment team.
The launch follows Schroders Capital’s integration of tokenisation capabilities into its insurance-linked securities investment platform earlier this year.
Schroders has also been involved in the Project Guardian asset and wealth management working group led by the Monetary Authority of Singapore, which aims to develop standards for digital assets.
Schroders manages £867.8bn in assets as at 30 June 2026.