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Schroders wins Central Bank of Ireland approval for tokenised money fund class
The tokenised share class, called SOAR, will use J.P. Morgan's Kinexys multi-chain system to automate redemptions and transfers via smart contracts.
Schroders has received approval from the Central Bank of Ireland for a tokenised share class in a US dollar money market fund, marking its first launch of this type.
The new share class, Schroders onchain active returns (SOAR), is designed to meet client interest in digital asset products while enabling more efficient fund operations. Schroders said investors will use smart contracts to handle transaction workflows such as redemptions and transfers.
SOAR will be implemented using Kinexys by J.P. Morgan's multi-chain tokenisation system. Schroders said the structure is intended to make it easier for the money market fund to move outside conventional systems, including transfers between clients, and it could support later uses such as collateralisation and round-the-clock treasury and liquidity management.
The approval follows Schroders Capital's earlier introduction of a tokenised feature for its insurance-linked securities investment platform, and the firm also participated in a digital assets standards effort with Singapore's Monetary Authority and other market participants. The Ireland-domiciled fund will be managed with input from Neil Sutherland, head of US fixed income and portfolio manager at Schroders, together with credit specialists.