Citi and Fidelity International announced a proof-of-concept on-chain money market fund today, becoming the two newest financial institutions to enter the tokenization space.

The proof-of-concept, which is set to be displayed at the Singapore FinTech Festival Nov. 6-8, is a tokenized money market fund (MMF) with an embedded foreign exchange (FX) swap for efficient on-chain money management.

MMF’s are traditional investment funds that invest in short-term debt instruments, usually in the form of U.S. Treasury bills. The move to place these MMF’s onchain is becoming increasingly popular as it allows for more transparency, faster and easier position management, instant redemptions, and the potential to integrate with Decentralized Finance (DeFi).

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