A subcommittee of the Commodity Futures Trading Commission's Global Markets Advisory Committee has voted to approve guidelines for using tokenized shares of money-market funds as collateral for traditional financial operations. The recommendations, if approved by the full committee, could significantly increase the adoption of tokenized collateral on financial markets and improve the capital efficiency for companies. This move benefits BlackRock's tokenized fund BUIDL and Franklin Templeton's FOBXX, which are the two largest tokenized money-market funds. Decentralized finance applications, such as Aave and Ethena Labs, are already exploring the benefits of merging traditional finance products with blockchain features.



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