Northern Trust Asset Management has entered the digital assets market by launching a tokenized share class for its NIF Treasury Instruments Portfolio. The fund invests in short-term U.S. Treasurys and uses blockchain technology to maintain a digital mirror of share ownership. Initially offered through BNY’s LiquidityDirect platform on Goldman Sachs’ Digital Asset Platform, the move expands a tokenized treasury market now valued at nearly $11 billion.
Northern Trust Asset Management has launched a tokenized share class for its NIF Treasury Instruments Portfolio, marking its entry into the digital assets market. The fund itself invests only in short-term U.S. Treasury instruments and maintains a target $1.00 per-share value.
The structure uses distributed ledger technology to maintain a digital mirror of share ownership. Authorized intermediaries are expected to maintain these blockchain-based records for clients on BNY’s LiquidityDirect platform, which operates on Goldman Sachs’ Digital Asset Platform.
Tokenized money market funds represent one of the most significant blockchain applications in traditional finance. By using blockchain-based ownership records, these funds aim to make settlement and transfers more efficient.
Nearly $11 billion in U.S. Treasury debt is currently represented on public blockchains, according to data from RWA.xyz. This makes it the largest category of tokenized real-world assets.
Major asset managers dominate this growing segment. BlackRock’s USD Institutional Digital Liquidity Fund holds about $2.2 billion in tokenized Treasurys, followed by Franklin Templeton’s OnChain US Government Money Fund at over $920 million.
The sector’s expansion is drawing scrutiny from financial watchdogs. In November, the Bank for International Settlements warned that tokenized money market funds could introduce operational and liquidity vulnerabilities if redemptions accelerate.
