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ARTICLE · 29 OCTOBER 2026

Tokenized Investment Funds In Canada

Tokenized investment fund products are gaining popularity worldwide. A common approach involves issuing tokens representing interests in an institutional liquidity fund designed to help eligible investors manage cash balances. These funds typically invest primarily in cash, U.S. government securities and repurchase agreements, seeking to generate income while preserving capital and maintaining liquidity to meet redemptions. Some were initially launched on Ethereum and have since expanded across multiple blockchain networks.

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Key Takeaways

  • Tokenized investment fund products, known as tokenized liquidity funds, are becoming popular for managing cash balances with a focus on preserving capital.
  • Canadian asset managers should assess how to structure tokenized liquidity funds within the legal framework and existing securities laws.
  • Tokenized units maintain their legal character under Canadian securities laws despite being represented on a blockchain.

Tokenized investment fund products are gaining popularity worldwide. A common approach involves issuing tokens representing interests in an institutional liquidity fund designed to help eligible investors manage cash balances. These funds typically invest primarily in cash, U.S. government securities and repurchase agreements, seeking to generate income while preserving capital and maintaining liquidity to meet redemptions. Some were initially launched on Ethereum and have since expanded across multiple blockchain networks.

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