# Tokenized money-market funds: a fund share on blockchain rails A tokenized money-market fund represents fund shares using blockchain-related recordkeeping or tokens. It is an investment product with a portfolio, shareholder terms and redemption process, not automatically an unrestricted payment stablecoin. A dollar share-price target does not guarantee value, yield, transferability or instant bank redemption. Evidence: [Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm); [USDC Terms](https://www.circle.com/legal/usdc-terms) Canonical: https://degreesofsatoshi.com/encyclopedia/tokenized-money-market-funds/ Published: 2026-10-02 Substantively modified: 2026-10-02 Independently verified by an automated reviewer: 2026-10-02T15:09:00.630Z Data current through: 2026-10-02 AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied. ## Key facts - **Claim:** A fund token can represent a share in an investment fund. ([Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm)) - **Controls:** Transfer-agent and eligibility rules can apply despite blockchain recordkeeping. ([Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm)) - **Value:** A stable share-price objective is not a guarantee against loss. ([Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm)) ## Ask what the token legally represents Compare two hypothetical balances displayed as 100 units. One may be a payment token under an issuer redemption arrangement. The other may be 100 fund shares with income and ownership terms. A similar wallet display does not make the rights or economic exposure the same. The key questions are whether the holder owns fund shares directly, holds a wrapper or intermediary claim, and appears in the authoritative shareholder record. A token ticker cannot answer those questions. The prospectus and account structure establish what the blockchain balance represents. Evidence: [Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm); [USDC Terms](https://www.circle.com/legal/usdc-terms) ## A concrete example with a limited scope The Franklin OnChain U.S. Government Money Fund prospectus in SEC accession 0001655589-26-000970, accessed on 2 October 2026, describes BENJI as fund shares and blockchain-integrated recordkeeping under its transfer agent’s control. It states that account onboarding and eligibility rules apply and that share purchases and redemptions are processed during normal business hours on business days. The prospectus also says the fund seeks a $1 share value without guaranteeing it and is not an insured bank account. These are attributes of this cited fund document. Other tokenized funds can have different investor restrictions, portfolio policies, transfer arrangements and redemption schedules. Evidence: [Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm) ## Track income, share value and liquidity separately In an illustrative fund, 1,000 shares at $1 each represent $1,000 before any charges. Income may be distributed or reinvested under the fund’s rules. If income is reinvested as additional shares, the balance can grow while the target per-share price stays unchanged. The example describes possible accounting, not a promised return. A wrapper can instead show growth through its conversion rate. Always specify which quantity changes and how it becomes spendable money. A token transferable outside banking hours may still require an eligible buyer or a later redemption process. Blockchain settlement and portfolio liquidity are separate properties. Evidence: [Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm); [USDC Terms](https://www.circle.com/legal/usdc-terms) ## Questions ### Is a tokenized Treasury product always a money-market fund? No. The token may represent fund shares, debt or another intermediary claim. Identify its legal structure and offering documents before applying a fund label. Evidence: [Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm) ### Does holding government assets guarantee the token’s dollar value? No. The cited fund explicitly warns that its $1 share objective is not guaranteed; token and account structures introduce additional conditions. Evidence: [Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm) ## Claims and scope ### tokenized-money-market-funds-quick-answer A tokenized money-market fund represents fund shares using blockchain-related recordkeeping or tokens. It is an investment product with a portfolio, shareholder terms and redemption process, not automatically an unrestricted payment stablecoin. A dollar share-price target does not guarantee value, yield, transferability or instant bank redemption. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### tokenized-money-market-funds-fact-claim Claim: A fund token can represent a share in an investment fund. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### tokenized-money-market-funds-fact-controls Controls: Transfer-agent and eligibility rules can apply despite blockchain recordkeeping. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ### tokenized-money-market-funds-fact-value Value: A stable share-price objective is not a guarantee against loss. Scope: {"collection":"stablecoins","dataAsOf":"2026-10-02","blockHeight":null} ## Sources - [Franklin OnChain U.S. Government Money Fund prospectus](https://www.sec.gov/Archives/edgar/data/1786958/000165558926000970/c485bpos.htm) — Franklin Templeton / SEC EDGAR. Fund shares/BENJI, government money-market assets, eligible accounts, no insured deposit or guaranteed share value. Locator: Fund Summary; Principal Risks; Shareholder Information. Retrieved: 2026-10-02T14:41:32.877374+00:00. - [USDC Terms](https://www.circle.com/legal/usdc-terms) — Circle. USDC backing, conditional redemption, price fluctuations, no intrinsic interest, freezes, fees and eligibility. Locator: Sections 1–4 and 13–16. Retrieved: 2026-10-02T14:38:29.678281+00:00. ## Revision history - 2026-10-02: First publication after primary-source research and independent automated verification. ## Cite this entry Degrees of Satoshi editorial project. “Tokenized money-market funds: a fund share on blockchain rails.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/tokenized-money-market-funds/