Money market fund

I think if you look at every week CMA notices to the public, there's either a new special fund, there's either a new MMF.

I think we are around, running at around 23 MMFs.

And, uh, every asset manager or fund allocator have their apps.

I think, uh, recently we had SIB.

But I don't know, saying like, did the whole thing ever get killed? I don't know if I'd say we ever got that close.

And you then started with a money market fund, an industry that is now a lot of people in the space would say, oh, that's one of the first use cases, a very logic use case.

Makes a lot of sense to do that.

Has it always been the money market fund you were looking at as the first use case? Or are you looking at different types of offerings?

Well, you know, so remember with me back when we started, interest rates were at zero.

So nobody was looking at money funds.

Most of the other products out there actually do have off-chain book of records, which means they don't really reconcile until the off-chain book opens up, which is market hours.

For us, because the asset is the asset and there's no other book of records running That asset, if it trades to you at two in the morning on Sunday, it authentically settles and becomes yours, which means you can start to layer all these other functions onto it, which, again, makes it this ideal asset for a lot of global treasurers.

That really is my primary objective.

And I think if that's the case, then I would say, yeah, you know, the Fidelity government money market or the Schwab value advantage money market or even a Vanguard federal money market fund, those can be great, give you a little bit more yield.

You just need to understand that you don't have that FDIC insurance and you don't have immediate access to the money like you do with a bank product.

I see.

Typically, yeah, because you've got to wait for the transaction to settle and clear, and then, you know, you could take a withdrawal at that point.

So it's just not immediate like it would be with a savings account.

of the funds having a problem, they call it breaking the buck because basically what happens is the idea behind a money market fund is it always is priced at a dollar per share.

It's only happened once that I can think of.

But the wisdom of this age and time is that you don't just put it in a normal savings account where you get next to nothing, 3%, 2%.

You can put it in what is called a money market mutual fund.

Most money market mutual fund accounts in Nigeria right now will pay you between 14% to 19%.

So when you put it in your money market mutual fund account, and the good thing as well is you can take it out at any point in time.

So I have a money market account that allows me to withdraw within 24 hours.

so any emergency that cannot really stay for 24 hours is not really emergency a lot of times it is lack of planning for example you get involved in an accident people say it's an emergency but the wisdom to deal with life or that kind of situation is you should have should have prepared and have what is called comprehensive or third-party insurance insurance now kicks in and takes you through that either or your wife is in labor for those that are married and you know there was a time One of my colleagues' driver came to him and was asking, oh, my wife is in labor, it's an emergency, I need help.

would be things like forex cryptocurrencies or investing into the business of other people as an angel investor so those are the categories for someone that is starting out and you don't have a money after you have started out your emergency savings or emergency fund you can still start you can still stay around mutual funds low risk matter of fact i give a formula which is 15 30 20.

Put in low-risk investment.

Right.

But the problem is, because the stocks and shares ISA can still be invested in, we leave it entirely in cash, or you can put it in what are called money market funds, which are funds that behave like cash.

Right, so what was the point of that then?

Well, so if...

Okay,

so they it's a way of getting around the man.

There's another loophole So you asked if this applies to money market funds? Yeah If those money market funds represent 100% of the money in their stocks and shares ISA, yes, it does apply.

Fine.

We think that that's an unlock for net new USDC liquidity to move on chain.

And so, you know, the big banks that we're working with that want to do really exciting things, going back to my roads around stablecoin effects use cases from tokenization like BlackRock and their Biddle Fund and Money Market Fund and broad ETFs.

to DTTC, who's exploring, you know, tokenized equities.

They're all excited about ARK because it solves those problems.

Authorities will assess whether further stabilization work is required before full commercial traffic resumes.

Turning to financial markets, assets in money market funds have climbed to $13.5 trillion as investors adjust holdings in response to interest rate expectations.

Commentary highlights the scale of these short-term instruments in the current environment.

Large institutional participants continue to direct capital into these vehicles for liquidity and relative yield advantages.

So what, uh, what will happen from April is there'll be a restriction on what the government is calling near cash investments.

And for the purposes of the regulations, a near cash investment at the moment is just limited to money market funds.

Okay? So there'll be a restriction on the amount of a stocks and shares ISA that can be invested in a money market fund.

And the way the restriction will work is that if a hundred percent of the non-cash element of a stocks and shares ISA is invested in a money market fund, then the money market fund becomes non-qualifying, and then the ISA manager will need to take steps to correct the ISA account.

So on that basis, you could have a situation where if you're selling investments and the only thing that you've got left is a money market fund, then you've then got potentially an issue that crops up.

And can I just clarify, the twenty-two percent charge that we d-discussed before, this won't apply on the money market funds?

That's right.

So the twenty-two percent charge, i-important point to th- to make is that that charge applies to interest on cash deposits.

The information in this table is more easily grasped in a table than in a narrative form.

Before, our investment advisory agreements cover the Growth Fund, International Fund, Muni Fund, Bond Fund, and the Money Market Fund.

The effective rate for agreements for the Growth Fund and the International Fund is June 1, 1993, and for the Muni Fund, Bond Fund, and Money Market Fund, June 1, 1994.

After, our investment advisory agreement covers these funds.

Investment Advisory Agreement Effective Date Fund Name June 1, 1993 – Growth Fund, International Fund June 1, 1994 – Muni Fund, Bond Fund, Money Market Fund Graphics Graphics often illuminate information more clearly and quickly than text.

This section introduces some basic guidelines about using graphics in your document.

To learn more, books and articles cover the topic in rich and rewarding detail.