The Furda International Digital Asset strategist Giselle Lai said that the long-term attractiveness of the monetization fund to pensions, insurance agencies and large enterprises did not necessarily come first from a 24-hour deal, but more likely from balance sheet management. Such tools are better suited to address cross-regional and cross-account cash movement issues.
The agency's more concerned about how to move the funds.
Large global agencies usually need to retain cash in different countries and bank accounts to meet regulatory requirements, manage exchange rate risks and make timely payments when needed. These deposits are often dispersed and part of the funds are not even profitable. How to allocate funds more quickly between jurisdictions has been an operational challenge.
Lai indicated that if an enterprise could use a monetization tool with all-weather capability, it would have the opportunity to manage the liquidity of accounts more efficiently than simply treating the monetization product as a new trade.
Currencyization funds are considered a cash management tool
She pointed out that the focus of institutional investors was not “whether or not to hold tokens”, but what could be done in the case of monetized assets over the shell of existing financial products. For such clients, faster settlement, lower-cost, sustainable revenue generation and more flexible use as collateral are more realistic needs.
This also explains why the monetized money market funds have taken the lead in getting the attention of those involved in the issuer, the financing platform and part of the national debt. Often, these institutions need to be able to operate on a continuous basis as well as more flexible collateral flow capabilities.
Markets have expanded, but maturity takes time
According to the data, the management of monetized money market funds and other chain-based instruments has exceeded $15 billion; and the RWA market, excluding stable currencies, has exceeded $31 billion. A combination of alternative assets and a monetized financial infrastructure would give the global asset monetization market an estimated $2.1 trillion.
Citing Grand View Research, the article states that by 2033 the industry would have grown to 24.5 trillion United States dollars; some industry estimates even suggest that the monetization market could have reached $88 trillion by 2035.
Lai believes that it will still take a long time to truly complete balance sheet management ecology. She cited the ETF industry as an example, where the infrastructure had matured for almost 20 years and the monetization market could go through a similar process.