Frictionless Markets (Luxembourg) has launched its Institutional Cash Funds, providing professional investors and the institutional capital markets access to underlying Money Market Funds with ultra-low minimums, low fees, daily yield and instant redemptions across a broad range of currencies.
The Frictionless Institutional Cash Funds launch features three main offerings: a US Treasury Fund, a Sterling Government Fund, and a Euro Government Fund. These funds are designed to strategically attract institutional capital from both digital asset and traditional cash management markets.
Frictionless Institutional Cash Funds are specifically designed to eliminate costs and inefficiencies associated with institutional capital on-chain, distinguishing them from traditional cash deposits and crypto stablecoins. These funds aim to maximize yield while benefiting from the liquidity and market depth of money market funds. This innovative approach facilitates seamless cash management for institutional investors, enabling instant settlements and efficient capital flows without the typical friction found in conventional financial systems.
💸 Maximum Daily Yield - Investors in Frictionless Institutional Cash Funds receive the maximum daily yield from underlying BlackRock MMFs with the tightest spreads on the market, courtesy of our efficient, MiFID II-compliant Luxembourg structures.
⏰ Instant Settlement - Investors in Frictionless Institutional Cash Funds seamlessly invest in and redeem using our audited instant settlement technology.
🌐 Daily Redemptions - Holders of Frictionless Institutional Cash Funds can redeem their MMF tokens daily with T-0 settlement, thanks to our direct integration with the underlying order book and settlement systems.
💱 Multi-Currency - Invest or Settle via any supported currency, regardless of the fund denomination. Invest or Settle US Treasuries, Euro Government Liquidity Funds or Sterling Liquidity Funds using frictionless FX Swaps.
🏛 Broadest Range of Tokenized MMFs - Frictionless will provide the broadest range of tokenized MMFs in the market covering the full range of US Treasury, Euro and Sterling from the Frictionless Institutional Cash Funds.
🛟 Ultra Low Minimums - Frictionless will enable investment minimums from as little as 1K U.S. Dollars/Euro/Pounds into Frictionless Institutional Cash Funds.
⚖ OnChain Collateral - Frictionless Institutional Cash Funds serve as qualified financial collateral under the Luxembourg Financial Collateral Act 2005, ensuring collateral security for a vast array of institutional trade & settlement use cases.
All Frictionless Institutional Cash Funds are issued in a tokenized form on Avalanche by Frictionless Markets in Luxembourg, providing the most robust global Investor protections under the Financial Collateral Act 2005 and the Securitization Law 2004.
More Blockchains on the horizon
Frictionless Markets has announced plans to add support for additional blockchains, including BASE, Ethereum, and Arbitrum, in the coming weeks. This will also include the ability to transfer its tokens across EVM-compatible blockchains.
Disclaimer
A Money Market Fund (MMF) is not a guaranteed investment vehicle. An investment in MMFs is different from an investment in deposits; the principal invested in an MMF is capable of fluctuation and the risk of loss of the principal is to be borne by the investor. MMFs do not rely on external support for guaranteeing the liquidity of the MMF or stabilising the NAV per share.
