A press release titled, "Northern Trust Asset Management Enters Digital Assets Market with Launch of Tokenized Money Market Share Class" tells us, "Northern Trust Asset Management, a leading global investment management firm with US$1.4 trillion in assets under management as of December 31, 2025, launched a tokenized share class for its NIF Treasury Instruments Portfolio. Marking the firm's entry into the digital assets market, the tokenized share class represents a digital mirror record of the fund's institutional share class using blockchain technology. This offering will initially be available to clients on BNY's market-leading LiquidityDirect platform, which utilizes Goldman Sachs Digital Asset Platform." (Note: Register soon for our upcoming Bond Fund Symposium, Crane Data's ultra-short bond fund conference, which will take place March 19-20 in Boston. We hope to see you in 2 1/2 weeks!)
Paula Kar, Northern Trust Asset Management's Chief Product Officer, comments, "This launch reflects Northern Trust Asset Management's commitment to delivering secure, efficient, and innovative liquidity solutions for institutional investors. Tokenization delivers meaningful advantages, including improved settlement efficiency and enhanced visibility. Money market funds are on the leading edge of digital innovation, and we are excited to advance our product suite in this evolving space."
NTAM President Michael Hunstad adds, "As the investment landscape rapidly evolves with the use of blockchain-based solutions, Northern Trust Asset Management is committed to staying on the forefront of innovation to meet the needs of our institutional clients. By applying tokenization to institutional grade liquidity strategies, we are offering clients a modern, digital-first way to access money market investments while maintaining our high standards of governance, risk management and service."
The release explains, "The NIF Treasury Instruments Portfolio provides investors with exposure to a diversified pool of short-term U.S. Treasury instruments, now with the added option of a blockchain‑enabled access model designed to support operational resilience and evolving digital market infrastructure. Northern Trust Asset Management has US$355 billion in assets under management in liquidity strategies as of December 31, 2025."
A Form N1-A Registration Statement for Northern Institutional Funds Treasury Instruments Portfolio announced the pending launch of new Digital Enabled Shares (NDEXX). It says, "The Portfolio seeks to maximize current income to the extent consistent with the preservation of capital and maintenance of liquidity by investing its net assets, under normal conditions, exclusively in U.S. Treasury securities." The fund has an 18 bps expense ratio.
Northern's filing continues, "The Portfolio seeks to achieve its objective by investing, under normal circumstances, its total assets exclusively in: Cash; and Short-term bills, notes and other obligations issued or guaranteed by the U.S. Treasury ('Treasury Obligations'). The Portfolio, under normal circumstances, will invest at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in Treasury Obligations. Repurchase agreements are agreements in which the Portfolio agrees to purchase portfolio securities from financial institutions subject to the seller's agreement to repurchase them at a mutually agreed upon date and price."
It tells us, "The Portfolio operates as a 'government money market fund' under Rule 2a‑7 of the Investment Company Act of 1940, as amended. As a 'government money market fund' under Rule 2a‑7, the Portfolio (1) is permitted to use the amortized cost method of valuation to seek to maintain a stable net asset value ('NAV') of $1.00 share price, and (2) is not required to impose a liquidity fee on Portfolio redemptions that might apply to other types of money market funds. The Portfolio may invest in shares of other government money market funds."
Northern adds, "Large Shareholder Risk is the risk that a large proportion of the interests of the Portfolio may be held by a small number of investors (or a single investor) and the Portfolio may experience adverse effects when certain large shareholders, including funds or accounts over which the Portfolio's investment adviser or an affiliate of the investment adviser has investment discretion, purchase or redeem large amounts of shares of the Portfolio. Such large shareholder redemptions, which may occur rapidly and unexpectedly, may cause the Portfolio to sell its securities at times it would not otherwise do so, which may negatively impact its liquidity and/or NAV. Such sales may also accelerate the realization of taxable income to shareholders if these sales result in gains, and may also increase transaction costs."
They state, "You may purchase Digital Enabled Shares of the Portfolio through certain authorized intermediaries. An 'authorized intermediary' is a financial intermediary that has entered into an intermediary agreement with NTI for the sale of Digital Enabled Shares of the Portfolio. Although the Portfolio does not currently employ blockchain technology or invest in crypto assets, Digital Enabled Shares are expected to be purchased and held through intermediaries that intend to use blockchain technology to maintain a mirror record of share ownership for their customers."
The filing adds, "The Portfolio does not currently employ blockchain technology or invest in crypto assets. Intermediaries through whom shareholders purchase and redeem Digital Enabled Shares, however, intend to employ blockchain technology to maintain a mirror record of share ownership for its customers. A blockchain is a distributed ledger that facilitates the process of recording transactions and tracking assets in a business network. Assets are represented on the blockchain through tokens, which are digital representations of an asset and are built into the blockchain. Blockchain networks are based upon software source code that establishes and governs their respective cryptographic systems for verifying transactions."
Finally, it says, "Complex information technology and communications systems, such as blockchain networks, are subject to various threats and/or risks (including operational, information security, cyber-attacks and related risks) that could adversely affect the Portfolio, its shareholders and intermediaries through whom you purchase and redeem shares of the Portfolio. The use of blockchain technology is relatively new and the regulatory framework applicable to such use in the United States is still evolving, which might result in regulatory uncertainty or concerns that could require changes to the manner in which such technology is used, impose additional regulatory obligations, and negatively impact investors. Blockchain systems could be vulnerable to fraud. The Portfolio, its investment manager, distributor, transfer agent and their affiliates will not be responsible for any loss in connection with the use of blockchain technology by authorized intermediaries."
For more on Tokenized MMFs, see these Crane Data News stories: "BNP Paribas Debuts Tokenized MMF" (2/23/26), "Western Adds Tokenized MMF Class" (1/14/26), "Boston Fed Paper Examines Vulnerabilities of MM ETFs, Tokenized MMFs" (1/7/26), "More from Irish Funds' Tokenization Paper; Decrypt Explains Stablecoins" (12/29/25), "JPMAM Liquidity Insight: Tokenization Transforming Money Market Funds" (12/24/25), "Amundi Tokenises Shares of EUR MMF" (12/22/25), "JP Morgan Launches Tokenized MMF, My OnChain Net Yield Fund (MONY)" (12/17/25), "Bank for International Settlements Primer on Tokenized Money Funds" (12/2/25), "TD Securities Writes on Stablecoins, Tokenized Money Funds, Digital" (11/5/25), "NY Fed Blog Says Money Funds Dominate Tokenization To Date; Stability?" (9/25/25), "IMMFA on Tokenization of MMFs in Europe; Tether USDT; Fidelity Digital" (9/22/25), and "BNY's LiquidityDirect Portal Announces Plans to Tokenize Money Funds" (7/24/25).
