BNY Mellon has been appointed as the investment manager and primary custodian for assets backing OpenEden’s tokenized US Treasury fund, the Singapore-based fintech firm announced on Wednesday.
Launched in 2023, the fund gives investors direct exposure to a pool of short-dated US Treasury bills and overnight reverse repurchase agreements by minting Treasury bill tokens. The fund currently has nearly $300 million in assets under management.
According to Doni Shamsuddin, head of Asia Pacific at BNY Investments, this is the first time BNY is offering both investment and custody services to tokenized funds.
As part of the agreement, BNY Mellon will manage the fund and invest in Treasury bills, money market funds, and other similar assets that will back the tokens issued by OpenEden.
This move comes amid rising demand for tokenized money market funds and a growing debate among major U.S. banks about expanding into cryptocurrencies, following positive endorsements from regulators.
Tokenization is the process of converting financial assets like bank deposits, stocks, bonds, funds, and real estate into cryptocurrency assets on a blockchain.
