Overview
Deutsche Bank published a note on 1 July 2026 highlighting how tokenisation – the digital representation of assets on blockchain – is accelerating the move toward 24/7 digital financial markets. The bank points to recent momentum, citing progress by the U.S. SEC on tokenised stocks, speeches by Federal Reserve governors and ongoing work by the DTCC on tokenised collateral infrastructure.
Tokenised Money Market Funds (TMMFs)
The note identifies a rapid rise in tokenised money market funds, stating that TMMFs have averaged more than 250 % year‑over‑year growth in assets under management over the past two years, outpacing stablecoins. Analyst Andrew Fu argues that TMMFs are better suited than stablecoins or tokenised bank deposits to serve as settlement currency in tokenised markets because they combine yield‑bearing characteristics with “money‑like” transferability.
Repo Market Implications
Deutsche Bank argues that tokenisation could enable real‑time execution of repo transactions, automate manual processes and support an intraday repo market where borrowing lasts only minutes or hours rather than overnight. The bank estimates that a fully scaled intraday repo market could reduce precautionary reserve balances by roughly $250 billion, potentially allowing the Federal Reserve to further shrink its balance sheet.
Reference Rate Implications
The note flags that, if intraday repo expands sufficiently, the traditional fed‑funds market could contract over time. This prospect aligns with Dallas Fed President Logan’s proposal to shift the target policy rate away from fed funds toward Treasury repo rates.
Publication Details
The article, authored by Sam Boughedda for Reuters and posted on Investing.com under the Stock Market category, reflects Deutsche Bank’s view of tokenisation’s dramatic implications for funding markets, reserve demand and key interest‑rate benchmarks.