Today in Crypto: Uber Tests Tokenized Money Funds to Unlock 24/7 Trading Yield

Across major exchanges, the ride-sharing giant used a tokenized money market fund to earn 1.5 days more yield on its investment by selling the assets on Sunday rather than Friday, as institutions traditionally do.

Franklin Templeton, HSBC Holdings, and Fireblocks collaborated in this test.

Companies are turning to blockchain and tokenized assets to boost profits by taking advantage of 24/7 trading.

Uber, a public ride-hailing app with a sector capitalization of over $130 billion, has announced it leveraged tokenized investment opportunities in a recent investment test.

Using blockchain, the company purchased a Franklin Templeton-tokenized money sector fund on Tuesday and sold it on a Sunday.

The move allowed it to accrue 1.5 more days of yield compared to operations executed using traditional market funds, which would have to be sold on Friday, as other companies currently do.

Franklin Templeton, HSBC Holdings, Fireblocks, and Tradeweb Markets were involved in this test, executed on top of the Canton Network, a blockchain network developed to support this kind of institutional operation.

Fireblocks CEO Michael Shaulov stressed that tokenization could solve the problem of putting idle capital in treasuries to work without giving up access to it.