Coinbase Asset Management, a division of the Coinbase crypto exchange, is set to introduce a tokenized money-market fund, according to insiders.
Sources indicate that to launch this tokenized fund, Coinbase Asset Management has partnered with the Apex Group, a financial services provider servicing nearly $3 trillion in assets across administration, depositary, custody, and under management as of 2022.
Tokenization, the process of representing real-world assets as digital tokens on a blockchain, is gaining traction in the crypto industry. A notable example is BlackRock's USD Institutional Digital Liquidity Fund on the Ethereum blockchain, represented by the BUIDL token.
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Tokenization offers various advantages for both investors and issuers, including increased liquidity and enhanced transparency, efficiency, security, and accessibility.
Coinbase's new tokenized money-market fund underscores the growing importance and potential of blockchain-based financial products.
This initiative comes during a period of regulatory challenges for Coinbase. In June 2023, the US Securities and Exchange Commission (SEC) filed a lawsuit against the crypto exchange, accusing it of violating federal securities laws.
A recent development in the case is that Coinbase filed a motion to request access to SEC Chair Gary Gensler's private communications and emails, claiming they are essential to defend against the accusations.
