Generali Investments is taking its first steps into financial tokenization with a share class of a Luxembourg money market fund registered on a blockchain. Reserved for now for certain companies within the group, this trial aims to assess the benefits of distributed ledgers for subscribing to, tracking and settling shares, as tokenized assets gain ground in traditional finance.
Generali Investments has announced the launch of a tokenized share class backed by an existing money market fund domiciled in Luxembourg. The product is managed by Generali Asset Management. Using distributed ledger technology, the shares are represented and recorded as tokens on a blockchain.
This initiative marks an important milestone for the asset manager, which is thus entering the market for tokenized real-world assets, often referred to by the acronym RWA. Tokenization involves associating a digital representation recorded on a shared ledger with a traditional asset. In this case, the shares of a money market fund are involved.
However, the project remains confined to an internal environment. At this stage, only certain authorized entities within the Generali Group can access this share class. It is not open to the general public or to other investors, regardless of their jurisdiction. This limited scope allows the group to test how the system works before considering any potential changes.
An internal trial ahead of a broader rollout
The decision to make the first phase available only to companies within the group reflects a gradual approach. Financial institutions experimenting with tokenization must assess the reliability of the tools, the compliance of operations and the integration of these new processes with their existing systems. A controlled scope can therefore help observe how the technology is used and identify any necessary adjustments.
With €759 billion in assets under management as of June 30, Generali Investments has a scale that gives this initiative particular significance. Its entry into tokenization reflects the growing interest among major European asset management firms in infrastructures where assets and certain financial operations can be tracked across digital networks.
This initiative is part of a broader industry shift. To understand the different applications of this technology, the article on tokenization and its impact on finance outlines the key issues involved in this transformation. Generali’s launch offers a concrete example, involving a regulated financial product rather than an asset designed exclusively for the cryptocurrency ecosystem.
Money market funds: a first step for traditional finance
Money market funds are playing a prominent role in the first institutional experiments with tokenization. They are built around short-term instruments and meet common investment and liquidity management needs. Their operation is therefore central to discussions about how to make traditional assets accessible and usable within digital infrastructures.
The RWA market is growing rapidly. According to data cited in the information related to this announcement, its value has nearly quadrupled since the beginning of 2025, reaching $39 billion in September. Bonds and money market funds are among the categories contributing most to this growth, serving as a bridge between conventional financial markets and “on-chain” environments.
Long-term estimates vary widely, but they reflect the sector’s high expectations. Morgan Stanley and Oliver Wyman project a $2.3 trillion market by 2030. Other forecasts, including those from Boston Consulting Group and Ripple, point to potential growth of up to $19 trillion by 2033. These projections remain scenarios and will depend, in particular, on investor adoption, applicable rules and the ability of infrastructures to operate at scale.
A segment already attracting major asset managers
Generali is joining a movement already involving several major international players. BlackRock, with its BUIDL fund, and Franklin Templeton have notably launched initiatives involving the representation of financial products on blockchain. The progress of these projects shows that tokenization is no longer limited to isolated experiments in the digital asset space.
Tokenized money market fund shares can offer two complementary benefits. They provide access to a product designed for cash management while potentially being integrated into more automated digital processes. In some cases, these shares can also serve as programmable collateral, meaning they can be used in transactions whose terms are executed or tracked by applications based on smart contracts.
This possibility is particularly appealing to stablecoin issuers, which need to manage reserves and collateral. In some frameworks, a tokenized financial asset could contribute to this management by being tracked and transferred using digital tools. However, making these use cases a reality depends on the legal, operational and risk management arrangements in place.
The industry’s prospects also depend on the development of protocols and infrastructures. An analysis of six protocols considered important to the future of tokenization highlights the range of solutions that could support these new markets. The choice of networks and their ability to meet institutional requirements remain central questions.
Faster settlements and streamlined digital processes
Generali highlights several expected benefits of tokenization. Recording shares on blockchain could enable near-instant settlement, reducing the time needed to validate and finalize certain transactions. The group also points to faster access to redemption proceeds, as well as a smoother digital experience for subscriptions and reporting.
Tokenization could also change how investors access the fund. Longer order placement windows are among the anticipated benefits, along with the potential development of a secondary market. The ability to trade shares outside the usual channels could help improve their liquidity, provided the product rules and market mechanisms allow it.
These improvements are not automatic. Using a blockchain does not, on its own, guarantee immediate settlement or constant liquidity. The results will depend on coordination among participants, how the secondary market is organized and the compatibility of the systems used. The technology must therefore fit within a sufficiently robust operational and regulatory framework.
Transparency as an operational consideration
Recording transactions on a shared ledger can make it easier to track movements and access authorized information. It paves the way for more frequent data updates, with the possibility of continuously tracking certain elements rather than relying solely on periodic checks. However, the specific arrangements for transparency depend on access rights and how the system is designed.
This topic ties in with discussions about real-time financial monitoring. The article on continuous financial transparency enabled by blockchain explores this development and its implications. For tokenized funds, one key question is which data can be shared, with which participants and under what confidentiality requirements.
Generali prepares for the evolution of asset management services
Woody Bradford, CEO of Generali Investments, believes asset management firms must quickly prepare for the rise of tokenization. This position reflects a desire not to wait until use cases are fully established before experimenting. The internal launch is therefore intended to help the group build practical experience with the associated tools and processes.
Emiliano Di Giammatteo, Chief Operating Officer, sees tokenized money market funds as a potential component of a more interconnected and programmable financial system. He highlights their potential for liquidity and collateral management, particularly in activities related to stablecoins. This outlook goes beyond simply digitizing a ledger: it concerns how assets can interact with other financial services.
Programmability could, for example, make it possible to automate certain steps or set execution conditions in financial software. For asset managers, it could change how information flows and how certain operations are organized. However, these developments require clear governance, appropriate controls and coherent integration between digital systems and the requirements specific to financial products.
Infrastructure at the heart of the next phase
The growth of tokenized assets will depend on networks’ ability to meet a range of requirements: security, availability, processing speed and compatibility with the tools used by institutions. The characteristics of different blockchains influence issuers’ choices, which must take into account technology as well as regulation and operational needs.
Developments in public networks illustrate this search for solutions suited to different use cases. Debates over Solana’s adoption and the difficulties encountered by other ecosystems, discussed in this article on Solana’s position relative to BNB Chain, show that platforms can follow different trajectories depending on markets and conditions of use. For an institutional fund, however, choosing an infrastructure requires a specific assessment that cannot be reduced to a network’s popularity.
Long-term security is also part of these considerations. Work on resilience to technological change, including that discussed in the article on Algorand’s roadmap toward quantum resilience, is a reminder that the long-term viability of infrastructure is a strategic concern. Tokenization initiatives will therefore need to rely on systems capable of supporting sensitive financial operations over time.
With this share class reserved for the group’s authorized companies, Generali Investments is taking a measured approach: testing the digital representation of an existing money market fund, observing internal use cases and assessing potential gains. The experiment is part of a market in which major institutions are gradually exploring ways to bring traditional financial products closer to blockchain infrastructures.
