The article discusses the growth prospects of tokenized yield funds and stablecoins following recent developments like a stablecoin bill and BlackRock’s tokenized money market fund reaching $1 billion in assets under management. BlackRock’s BUIDL fund primarily attracts crypto-native firms seeking efficient yield generation on cash balances, while enabling quicker global payments through stablecoin liquidity. Industry experts, including Standard Chartered’s Waqar Chaudry, see tokenized money market funds and stablecoins as complementary, with tokenized funds aiding collateral management without replacing stablecoins. This evolving dynamic hints at a dual utility that may enhance cash savings and payment processes. Despite tokenized treasury products gaining traction, the stablecoin market remains larger, valued at approximately $220 billion. There is optimism for tokenized funds like BUIDL as traditional investors may gradually embrace this new format. However, the outlook for tokenized bonds and equities remains uncertain due to existing market efficiencies. Experts will further discuss these themes in a Blockworks Digital Asset Summit panel.

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