Create CP164.md

cps/CP167.md

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+---
+cp: 167
+title: The Tokenization of Money Market Funds (TMMFs)
+author: lschoenl
+contributors: none
+uses-component: cp2
+technical-proposal: no
+requires-onchain: yes
+impacts/modifies: 
+wallet: 13zDsuyqze6fh2u7i1gsK3BsW1Ag3cGzvznY4eABmfU6DYQ8
+status: 
+date-proposed: 2025-06-01
+date-ended: 
+---
+
+### Short Summary 
+
+ We propose a research project titled “Tokenization of Money Market Funds (TMMFs) in DeFi”, starting in July 2025, with first results expected by the end of 2025. The project analyzes how tokenized MMFs improve efficiency, liquidity, and transparency compared to traditional MMFs, and explores their impact within DeFi ecosystems such as decentralized exchanges (DEXs) and lending protocols. The research will provide actionable insights for regulators, policymakers, and industry participants. We seek €10,000 in funding to support data collection, research assistance, IT infrastructure, and dissemination.
+
+### High Level Objective
+
+The primary objective is to understand the interaction between TMMFs, stablecoins, and traditional MMFs. Specifically, the project will:
+
+Assess whether TMMFs compete with or complement stablecoins.
+
+Analyze how TMMFs integrate as collateral in DeFi and their systemic implications.
+
+Evaluate efficiency gains in cost, settlement speed, and transparency compared to traditional MMFs.
+
+Provide a policy-relevant framework to anticipate regulatory and stability challenges.
+
+Outputs: A working paper and a policy brief (Q4 2025), followed by academic publication and conference dissemination (2026).
+
+### Background
+
+Tokenization of real-world assets (RWAs) is a rapidly growing trend, with TMMFs emerging as one of the most promising instruments. 
+
+TMMFs combine the liquidity and security of MMFs with blockchain’s programmability. 
+
+They can be traded on DEXs and used as collateral in lending protocols, expanding their role beyond traditional markets.
+
+They may challenge stablecoins’ dominance by offering yield-bearing, transparent, and regulated alternatives.
+
+As pioneers in tokenized RWAs, CentrifugeDAO is strategically positioned to benefit from insights into adoption pathways, risks, and regulatory implications of TMMFs.
+
+#### Description of Activity 
+
+The study will provide a comparative analysis of TMMFs and traditional MMFs, combining on-chain and off-chain data:
+
+On-chain sources: Ethereum logs, rwa.xyz, CoinGecko
+
+Fund filings: inflows/outflows, portfolio composition
+
+Traditional MMF data: iMoneyNet, Crane Data
+
+Case studies: BUIDL, OUSG, JTRSY (Centrifuge’s tokenized MMF)
+
+Timeline
+
+Q3 2025 – Dataset construction
+Q4 2025 – First working paper + policy brief
+Q1 2026 – Conference presentations
+Q2 2026 – Final outputs and dissemination
+Budget allocation (€10,000):
+€3k – Research assistance & data collection
+€3k – Cloud & infrastructure
+€2k – Conferences
+€2k – Dissemination (journal submission & outreach)
+
+
+### Alignment to the mission of Centrifuge DAO 
+
+The research directly supports CentrifugeDAO’s leadership in tokenized RWAs:
+
+Direct value: JTRSY will be featured in comparative analysis, showcasing Centrifuge’s positioning in the RWA ecosystem.
+
+Strategic fit: Findings on adoption, collateral usage, and regulation will inform Centrifuge’s roadmap and engagement with policymakers.
+
+Visibility: Independent, data-driven outputs will highlight CentrifugeDAO as a thought leader in tokenized MMFs.
+
+
+Link to the RFC on the Forum: https://gov.centrifuge.io/t/grant-application-tmmfs/7103