Schroders wins Central Bank of Ireland approval for tokenised MMF share class

Schroders, the asset manager with £867 billion under management, has received regulatory clearance from the Central Bank of Ireland to launch a tokenised share class for a US dollar money market fund (MMF), branded Schroders Onchain Active Returns (SOAR). The tokenisation work will be handled by JP Morgan‘s Kinexys platform, which already serves as transfer agent for Schroders Funds ICAV, making the partnership a natural extension of an existing operational relationship.

The structure is a digital twin share class rather than a natively digital instrument, a design choice that mirrors the approach announced by BlackRock for its Irish UCITS funds earlier the same week. Both transactions converge on JP Morgan as the tokenisation and transfer-agent partner, which signals that Kinexys is emerging as a preferred institutional rail for European-domiciled fund tokenisation.

Schroders frames the use cases broadly: peer-to-peer transfer of MMF units between its clients, collateralisation, and around-the-clock treasury and liquidity management. The approval establishes a live regulatory precedent under Irish UCITS rules, which will matter to other asset managers considering similar structures for European-domiciled products.