Link of The Day
BlackRock: Stablecoins Here to Stay
BlackRock posted a "Weekly Commentary titled, "Stablecoins look here to stay" which tells us, "[T]he Genius Act, signed into law earlier this month -- creates a comprehensive payment stablecoin framework. Stablecoins are digital tokens pegged to a fiat currency and backed by reserve assets. They fuse the frictionless transfer of crypto with the perceived stability of fiat currency. Though stablecoins are small relative to the size of the overall crypto universe at a 7% share, their adoption has grown quickly since 2020 to reach about $250 billion.... We see two implications of the Genius Act on the U.S. dollar and Treasury bills. The act defines stablecoins to function as a payment method, not an investment product; prohibits issuers from paying interest; and limits issuance to federally regulated banks, some registered nonbanks and state-chartered firms. This regulation could reinforce dollar dominance by enabling a tokenized U.S. dollar-based ecosystem for international payments. Users in emerging markets may get easier access to the U.S. dollar over volatile local currencies. Yet in major economies, adoption may be limited by the ban on interest payments, which aims to prevent a low-friction rival that could compete with bank deposits and hurt traditional lending." The commentary says, "The act also spells out what assets stablecoin issuers may hold in reserve: mostly repurchase agreements, money market funds and U.S. Treasury bills with a maturity of 93 days or less. Leading stablecoin issuers Tether and Circle together hold at least $120 billion in Treasury bills, only about 2% of the Treasury's roughly $6 trillion bills outstanding. That demand could grow with the stablecoin market and spur new buying of bills -- but the impact on yields will likely be limited. First, stablecoin demand for bills is likely to be offset by money shifting from similar assets, so little net new demand. Second, bill issuance is set to keep surging due to the Treasury's preference to boost the funding of persistent deficits with more short-term debt." BlackRock adds, "This wave of mainstreaming digital assets -- through a regulatory framework and U.S. administration support -- bodes well for greater adoption, the core investment case we see for bitcoin and helping make it a distinct driver of risk and return in portfolios. Stablecoins are still a relatively small part of the broader crypto universe -- and as this evolves it's not clear how stablecoins will compete with other digital assets. We see stablecoins as a new part of the future of finance -- and new U.S. legislation is aiming to put the U.S. at the center of digital asset innovation. We still see bitcoin adoption as a distinct driver of risk and return."
Fed: Rates Unchanged at 4.25-4.5%
A release, "Federal Reserve Issues FOMC Statement," tells us, "Although swings in net exports continue to affect the data, recent indicators suggest that growth of economic activity moderated in the first half of the year. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty about the economic outlook remains elevated. The Committee is attentive to the risks to both sides of its dual mandate." It continues, "In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective." The FOMC adds, "In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee's goals. The Committee's assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments. Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Susan M. Collins; Lisa D. Cook; Austan D. Goolsbee; Philip N. Jefferson; Alberto G. Musalem; and Jeffrey R. Schmid. Voting against this action were Michelle W. Bowman and Christopher J. Waller, who preferred to lower the target range for the federal funds rate by 1/4 percentage point at this meeting. Absent and not voting was Adriana D. Kugler."
WSJ Opinion Questions Stablecoins
A Wall Street Journal Opinion piece asks, "Can Markets Trust Stablecoins?" The article, written by The Hoover Institution's Amit Seru, says, "Washington has again promised to reinvent money, this time with code. The political tailwind behind the newly passed Genius Act has given fresh life to a recurring fantasy that technology can finally banish the instability at the heart of finance. The promise is beguiling, but the reality is familiar: We can make money modern, but we're still plumbing it through 19th-century pipes." It explains, "This wishful thinking is fueled in part by the collapse of Silicon Valley Bank in 2023. That was no tale of subprime mortgages or exotic derivatives, but a rerun of the oldest story in banking: maturity mismatch. Depositors, in particular those uninsured, can withdraw on demand. Banks invest long-term. When interest rates jump and confidence cracks, withdrawals follow, assets are fire-sold, and the government steps in. Again. Regulators responded with tweaks -- raising capital buffers, fine-tuning liquidity rules -- and hoped the next run will be better managed. But the structure is unchanged. Banks hold high-leverage portfolios funded by short-term liabilities. Even 'safe' assets like Treasurys can unwind the system when hit by enough doubt." The piece adds, "The 'narrow bank' was once floated as a solution -- an institution that holds deposits in only cash or short-term Treasurys. Safe, yes. But sterile. No credit creation. No lending. No growth. Stablecoins are the tech era's remix of this idea: private digital tokens, pegged to the dollar, supposedly backed one-for-one with liquid reserves. Tether and USDC claim to offer programmable, borderless, run-proof deposits, minus the regulatory bulk of banks. And when faith falters, the plumbing freezes. TerraUSD, a stablecoin, collapsed in 2022 because it tried to maintain its dollar peg using code rather than real reserves. Its value hinged on being exchangeable for another token, Luna. But when confidence eroded, investors rushed to redeem TerraUSD, flooding the market with Luna. With no credible collateral and redemptions spiraling, both tokens crashed within days. Even 'fully backed' stablecoins have wobbled when markets questioned the reality behind the reserve claims."
Money Fund Yields Back Down to 4.11%
Money fund yields (7-day, annualized, simple, net) decreased by one basis point to 4.11% on average during the week ended Friday, July 25 (as measured by our Crane 100 Money Fund Index), after rising 1 bp the week prior. Fund yields should stay relatively flat until (or if) the Fed moves rates again later this year. They've declined by 95 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 52 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.13% on 6/30, 4.10% on 5/31, 4.13% on 4/30/25, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 677), shows a 7-day yield of 4.01%, unchanged in the week through Friday. Prime Inst money fund yields were down 1 bp at 4.24% in the latest week. Government Inst MFs were down 1 bp at 4.11%. Treasury Inst MFs were unchanged at 4.06%. Treasury Retail MFs currently yield 3.82%, Government Retail MFs yield 3.82%, and Prime Retail MFs yield 4.01%, Tax-exempt MF 7-day yields were up 37 bps to 2.37%. Assets of money market funds rose by $34.0 billion last week to $7.452 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $7.463 trillion (on July 1) after their previous high of $7.407 trillion set on June 30. For the month of July (MTD), MMF assets have increased $45.7 billion after increasing by $6.7 billion in June, $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 billion in November, $97.5 billion in October and $149.8 billion in September. Weighted average maturities were at 39 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (7/25), 116 money funds (out of 789 total) yield under 3.0% with $141.0 billion in assets, or 1.9%; 251 funds yield between 3.00% and 3.99% ($1.315 trillion, or 17.6%), 422 funds yield between 4.0% and 4.99% ($5.996 trillion, or 80.5%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.40%, after falling 1 bp ten weeks prior. The latest Brokerage Sweep Intelligence, with data as of July 25, shows no changes over the past week. Three of the 10 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
Dreyfus Token-Enabled Shares Live
Dreyfus's Head of Distribution Stephen Gill posted a statement on LinkedIn, saying, "Thrilled to celebrate the launch of BNY Investments Dreyfus Treasury Securities Cash Management Token-Enabled share class (TKNXX) as part of the new BNY and Goldman Sachs collaboration to offer tokenized money market funds via the LiquidityDirect platform. I am proud to be part of #BNY as we continue to bring the institutional market more firmly into the digital arena." (See here for information on the Dreyfus Treasury Securities Cash Management Token-Enabled Shares (TKNXX), see here for Crane Data's July 24 News, "BNY's LiquidityDirect Portal Announces Plans to Tokenize Money Funds," see the press release here, "BNY and Goldman Sachs Launch Tokenized Money Market Funds Solution," and see Bloomberg's, "Money Funds Take Major Leap in Tokenization Deal, JPMorgan Says.") The Prospectus filing for TKNXX, which will have an expense ratio of 0.18% after fee waivers, says under "Purchase and Sale of Fund Shares," "This prospectus offers Token-Enabled shares. The fund's Token-Enabled shares are designed generally for institutional investors, acting for themselves or in a fiduciary, advisory, agency, brokerage, custodial or similar capacity. Token-Enabled shares of the fund also may be purchased directly by individuals. Investors are required to purchase Token-Enabled shares through The Bank of New York Mellon, an affiliate of BNYIA, on The Bank of New York Mellon's platform. For information on how to purchase Token-Enabled shares, please contact your BNY representative. In general, the fund's minimum initial investment for Token-Enabled shares is $10 million with no minimum subsequent investment, unless: (a) the investor has invested at least $10 million in the aggregate among the fund and any of the Cash Management Funds, the Preferred Funds or Dreyfus Treasury and Agency Liquidity Money Market Fund; or (b) the investor has, in the opinion of BNY Institutional Services, adequate intent and availability of assets to reach a future aggregate level of investment of $10 million in such funds. You may sell (redeem) your shares on any business day by contacting your BNY representative. The fund's transfer agent maintains the official books and records of ownership of Token-Enabled shares, with such ownership reflected as an omnibus account for The Bank of New York Mellon (The Bank of New York Mellon Omnibus Account). The Bank of New York Mellon will maintain the share ownership records of its clients using its traditional books and records methods, and also will mirror such share ownership via a blockchain system. Assets are represented on the blockchain through "tokens," which are a digital representation of an asset and are built into the blockchain. Clients of The Bank of New York Mellon will not have access to ownership records, and will not be able to transact, directly on the blockchain." The filing adds, "The Bank of New York Mellon will mirror the ownership of its clients' Token-Enabled shares on a blockchain implemented by a financial institution (Blockchain). The Blockchain is a private, permissioned blockchain. Only authorized users, such as The Bank of New York Mellon, will have access to the Blockchain. In its capacity as platform operator, the financial institution will operate the Blockchain as a technical platform provider. The Bank of New York Mellon, and not the fund or the fund's transfer agent, will be responsible for its clients' ownership records on the Blockchain. Clients of The Bank of New York Mellon will not have access to ownership records, and will not be able to transact, directly on the Blockchain. The fund and the fund's transfer agent will only be responsible for maintaining share ownership of Token-Enabled shares represented on its books and records through The Bank of New York Mellon Omnibus Account. The fund will not bear any costs associated with the use of the Blockchain. The recording of the ownership of Token-Enabled shares of the fund by The Bank of New York Mellon on the Blockchain will not affect the fund's investments. The fund is a 'government money market fund,' as that term is defined in Rule 2a-7, and as such is required to invest at least 99.5% of its total assets in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, repurchase agreements collateralized solely by cash and/or government securities, and cash. The fund typically invests exclusively in U.S. Treasury securities. The fund will not invest in any cryptocurrencies (referred to as, among other things, virtual currencies)."
ICI: Money Market Fund Assets Higher
ICI's latest weekly "Money Market Fund Assets" report shows money fund assets rising $9.2 billion to a near-record $7.055 trillion, after falling $7.3 billion the week prior (and $5.9 billion the week before this). Assets rose $55.6 billion to a record $7.078 trillion three weeks ago. MMF assets are up by $930 billion, or 15.1%, over the past 52 weeks (through 7/23/25), with Institutional MMFs up $499 billion, or 13.6% and Retail MMFs up $430 billion, or 17.3%. Year-to-date, MMF assets are up by $224 billion, or 3.3%, with Institutional MMFs up $46 billion, or 1.1% and Retail MMFs up $179 billion, or 6.5%. ICI's weekly release says, "Total money market fund assets increased by $9.18 billion to $7.07 trillion for the week ended Wednesday, July 23, the Investment Company Institute reported.... Among taxable money market funds, government funds increased by $6.11 billion and prime funds increased by $3.97 billion. Tax-exempt money market funds decreased by $903 million." ICI's stats show Institutional MMFs increasing $10.4 billion and Retail MMFs decreasing $1.3 billion in the latest week. Total Government MMF assets, including Treasury funds, were $5.757 trillion (81.4% of all money funds), while Total Prime MMFs were $1.182 trillion (16.7%). Tax Exempt MMFs totaled $135.9 billion (1.9%). It explains, "Assets of retail money market funds decreased by $1.26 billion to $2.91 trillion. Among retail funds, government money market fund assets decreased by $2.09 billion to $1.83 trillion, prime money market fund assets increased by $1.51 billion to $958.39 billion, and tax-exempt fund assets decreased by $682 million to $123.26 billion." Retail assets account for 41.2% of the total, and Government Retail assets make up 62.9% of all Retail MMFs. They add, "Assets of institutional money market funds increased by $10.44 billion to $4.16 trillion. Among institutional funds, government money market fund assets increased by $8.21 billion to $3.92 trillion, prime money market fund assets increased by $2.46 billion to $223.68 billion, and tax-exempt fund assets decreased by $221 million to $12.59 billion." Institutional assets accounted for 58.8% of all MMF assets, with Government Institutional assets making up 94.3% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $42.8 billion in July (through 7/23/25) to $7.449 trillion. Assets hit a record high of $7.463 trillion on July 1 but have since inched lower. Assets increased by $6.7 billion in June and jumped by $100.9 billion in May. They fell by $24.4 billion in April, but rose $2.8 trillion in March, $94.2 billion in February and $52.8 billion in January. They jumped $110.9 billion in December, $200.5 trillion in November, $97.5 billion in October, $149.8 billion in September and $109.7 billion in August. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $330 billion lower than Crane's asset series.
Study Shows Shift from Banks to MMFs
The Associated Press writes that "More Americans shift money from checking and savings to accounts with investment income, study says." The article says, "New research finds that more Americans are shifting their money from checking and savings accounts into financial vehicles that pay an investment income -- a trend that helps to explain the resilience of the U.S. economy after a bout of high inflation and recent uncertainty due to tariffs. The analysis by JPMorganChase Institute examined the accounts of 4.7 million households and found that people's total cash reserves are increasing when including new amounts going into brokerage accounts, money market funds and certificates of deposit.... Inflation-adjusted cash balances in checking and savings accounts 'remain low with a flat-growth trajectory,' but since the middle of 2024 total cash reserves have been increasing and approaching historical growth trends once the additional accounts are included, the analysis said." The update quotes Chris Wheat, president of the institute, "Families across many income bands are now seeing a turnaround in their total cash." It adds, "Wheat said it had been 'hard to square the circle' of consumer spending staying strong despite the lack of growth in checking and savings accounts, an issue that can now be explained by people in a higher-interest rate environment shifting more money into accounts that yield investment returns. He said people appear to be using the other accounts to manage their cash, rather than simply making long-term investments." JPMorganChase's update, "Household Finances Pulse through May 2025: Bank balances are flat but total savings are growing again," states, "We find that while inflation-adjusted balances in checking and savings accounts remain low with a flat growth trajectory, total cash reserves have likely been rising since mid-2024 and are approaching historical growth trends."
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Tuesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of July 18) includes Holdings information from 55 money funds (down 7 from a week ago), or $3.526 trillion (down from $3.685 trillion) of the $7.418 trillion in total money fund assets (or 47.5%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our July 11 News, "July Money Fund Portfolio Holdings: Repo Jumps to 42%, T-Bills Plunge.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.579 trillion (down from $1.599 trillion a week ago), or 44.8%; Repurchase Agreements (Repo) totaling $1.297 trillion (down from $1.416 trillion a week ago), or 36.8%, and Government Agency securities totaling $310.9 billion (down from $330.9 billion), or 8.8%. Commercial Paper (CP) totaled $132.7 billion (down from a week ago at $143.4 billion), or 3.8%. Certificates of Deposit (CDs) totaled $91.3 billion (up from $81.1 billion a week ago), or 2.6%. The Other category accounted for $70.3 billion or 2.0%, while VRDNs accounted for $45.0 billion, or 1.3%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.579 trillion (44.8% of total holdings), Fixed Income Clearing Corp with $434.7B (12.3%), the Federal Home Loan Bank with $202.6 billion (5.7%), JP Morgan with $122.4B (3.5%), BNP Paribas with $84.8B (2.4%), Citi with $77.6B (2.2%), RBC with $77.3B (2.2%), Federal Farm Credit Bank with $69.7B (2.0%), Wells Fargo with $66.1B (1.9%) and Barclays PLC with $50.1B (1.4%). The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($289.1B), JPMorgan 100% US Treas MMkt ($259.4B), Fidelity Inv MM: Govt Port ($246.0B), Goldman Sachs FS Govt ($237.4B), BlackRock Lq FedFund ($175.4B), Morgan Stanley Inst Liq Govt ($163.9B), Fidelity Inv MM: MM Port ($160.4B), State Street Inst US Govt ($157.5B), BlackRock Lq Treas Tr ($154.8B) and Dreyfus Govt Cash Mgmt ($136.0B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
Money Fund Yields Inch Up to 4.12%
Money fund yields (7-day, annualized, simple, net) increased by one basis point to 4.12% on average during the week ended Friday, July 18 (as measured by our Crane 100 Money Fund Index), after falling 2 bps the week prior. Fund yields should stay relatively flat until (or if) the Fed moves rates again later this year. They've declined by 94 bps since the Fed first cut its Fed funds target rate by 50 bps on Sept. 18, 2024, and they've declined by 51 bps since the Fed last cut rates by 1/4 point on 11/7/24. Yields were 4.13% on 6/30, 4.10% on 5/31, 4.13% on 4/30/25, 4.14% on 3/31/25 and 4.28% on average on 12/31/24. MMFs averaged 4.75% on 9/30/24, 5.10% on 6/28/24, 5.14% on 3/31/24 and 5.20% on 12/31/23. The broader Crane Money Fund Average, which includes all taxable funds tracked by Crane Data (currently 677), shows a 7-day yield of 4.01%, unchanged in the week through Friday. Prime Inst money fund yields were up 1 bp at 4.25% in the latest week. Government Inst MFs were up 1 bp at 4.12%. Treasury Inst MFs were unchanged at 4.06%. Treasury Retail MFs currently yield 3.82%, Government Retail MFs yield 3.83%, and Prime Retail MFs yield 4.02%, Tax-exempt MF 7-day yields were up 38 bps to 1.99%. Assets of money market funds fell by $28.3 billion last week to $7.418 trillion, according to Crane Data's Money Fund Intelligence Daily. MMF assets hit a record high of $7.463 trillion (on July 1) after their previous high of $7.407 trillion set on June 30. For the month of July (MTD), MMF assets have increased $11.7 billion after increasing by $6.7 billion in June, $100.9 billion in May, decreasing $24.4 billion in April, increasing by $2.8 billion in March, $94.2 billion in February, $52.8 billion in January, $110.9 billion in December, $200.5 billion in November, $97.5 billion in October and $149.8 billion in September. Weighted average maturities were at 39 days for the Crane MFA and 40 days the Crane 100 Money Fund Index. According to Monday's Money Fund Intelligence Daily, with data as of Friday (7/18), 116 money funds (out of 789 total) yield under 3.0% with $141.4 billion in assets, or 1.9%; 245 funds yield between 3.00% and 3.99% ($1.311 trillion, or 17.7%), 428 funds yield between 4.0% and 4.99% ($5.966 trillion, or 80.4%) and following the recent rate cut there continue to be zero funds yielding 5.0% or more. Our Brokerage Sweep Intelligence Index, an average of FDIC-insured cash options from major brokerages, was unchanged at 0.40%, after falling 1 bp nine weeks prior. The latest Brokerage Sweep Intelligence, with data as of July 18, shows no changes over the past week. Three of the 10 major brokerages tracked by our BSI still offer rates of 0.01% for balances of $100K (and lower tiers). These include: E*Trade, Merrill Lynch and Morgan Stanley.
WSJ: Banks Worried About Stablecoins
The Wall Street Journal writes on "Why Banks Are on High Alert About Stablecoins." They tell us, "Stablecoins are poised to become a part of the mainstream financial system, and banks are on high alert about how the cryptocurrency could threaten their business. The House voted 308-122 Thursday to pass a bill that spells out some ground rules for stablecoins, which function as digital dollars in the wider crypto world. The Genius Act is now headed to President Trump, who has indicated he would sign it. A major issue for banks is whether stablecoin issuers will lure away customer deposits. A Treasury Department report in April estimated that stablecoins could lead to as much as $6.6 trillion in deposit outflows, depending in part on whether issuers could offer yields similar to bank accounts." The piece says, "For now, stablecoins are mainly used to trade in and out of other cryptocurrencies. But a regulatory framework could encourage broader use.... Stablecoin issuers such Circle and Tether earn revenue by investing the money people pay for tokens in cash-like assets such as Treasurys that pay yields. Coinbase CEO Brian Armstrong has argued that token-holders should get some of the interest issuers receive on those assets. The Genius Act prohibits stablecoin issuers from paying interest or yield to holders. Some lawyers and lobbyists say that may not stop issuers and their partners from finding ways to induce customers to hold stablecoins." The Journal adds, "Another concern is that stablecoins could lead to higher amounts of uninsured deposits at banks. If a customer takes money out of a Federal Deposit Insurance Corp.-backed account and buys a stablecoin, the issuer of that coin might end up putting the customer's money back in a bank account -- albeit a higher-balance account that is above the $250,000 limit for deposit insurance. A shift by consumers away from holding money in traditional bank deposits could have broad economic implications as well.... Big banks, in particular, hope to cash in on stablecoins, by managing stablecoin reserves and serving as a middleman between issuers and the world of fiat currencies. Megabanks also recently started to consider whether to jointly launch their own stablecoin through a consortium, to fend off competition as big tech and retail companies eye the space. Walmart, Amazon and other multinational giants have recently explored whether to issue their own stablecoins in the U.S., The Wall Street Journal previously reported."
ICI: Money Fund Assets Inch Down
ICI's latest weekly "Money Market Fund Assets" report shows money fund assets falling $7.3 billion to $7.065 trillion, after falling $5.9 billion the week prior and rising $55.6 billion to a record $7.078 trillion two weeks prior. MMF assets are up by $911 billion, or 14.8%, over the past 52 weeks (through 7/16/25), with Institutional MMFs up $480 billion, or 13.1% and Retail MMFs up $431 billion, or 17.3%. Year-to-date, MMF assets are up by just $215 billion, or 3.1%, with Institutional MMFs up $35 billion, or 0.8% and Retail MMFs up $180 billion, or 6.6%. ICI's weekly release says, "Total money market fund assets decreased by $7.26 billion to $7.07 trillion for the week ended Wednesday, July 16, the Investment Company Institute reported.... Among taxable money market funds, government funds decreased by $4.61 billion and prime funds decreased by $859 million. Tax-exempt money market funds decreased by $1.79 billion." ICI's stats show Institutional MMFs decreasing $11.1 billion and Retail MMFs increasing $3.9 billion in the latest week. Total Government MMF assets, including Treasury funds, were $5.750 trillion (81.4% of all money funds), while Total Prime MMFs were $1.178 trillion (16.7%). Tax Exempt MMFs totaled $136.8 billion (1.9%). It explains, "Assets of retail money market funds increased by $3.88 billion to $2.92 trillion. Among retail funds, government money market fund assets increased by $3.49 billion to $1.83 trillion, prime money market fund assets increased by $1.59 billion to $956.88 billion, and tax-exempt fund assets decreased by $1.21 billion to $123.94 billion." Retail assets account for well over a third of total assets, or 41.3%, and Government Retail assets make up 62.9% of all Retail MMFs. They add, "Assets of institutional money market funds decreased by $11.14 billion to $4.15 trillion. Among institutional funds, government money market fund assets decreased by $8.10 billion to $3.92 trillion, prime money market fund assets decreased by $2.45 billion to $221.23 billion, and tax-exempt fund assets decreased by $578 million to $12.81 billion." Institutional assets accounted for 58.7% of all MMF assets, with Government Institutional assets making up 94.4% of all institutional MMF totals. According to Crane Data's separate Money Fund Intelligence Daily series, money fund assets have increased by $29.6 billion in July (through 7/16/25) to $7.436 trillion; assets hit a record high of $7.463 trillion on July 1 but have since dipped. Assets increased by $6.7 billion in June and jumped by $100.9 billion in May, but fell by $24.4 billion in April. They rose $2.8 trillion in March, $94.2 billion in February and $52.8 billion in January. They jumped $110.9 billion in December, $200.5 trillion in November, $97.5 billion in October, $149.8 billion in September and $109.7 billion in August. Note that ICI's asset totals don't include a number of funds tracked by the SEC and Crane Data, so they're over $330 billion lower than Crane's asset series.
Weekly Money Fund Portfolio Holdings
Crane Data published its latest Weekly Money Fund Portfolio Holdings statistics Wednesday, which track a shifting subset of our monthly Portfolio Holdings collection. The most recent cut (with data as of July 11) includes Holdings information from 62 money funds (down 11 from two weeks ago), or $3.685 trillion (down from $4.069 trillion) of the $7.447 trillion in total money fund assets (or 49.5%) tracked by Crane Data. (Note: Our Weekly MFPH are e-mail only and aren't available on the website. See our latest Monthly Money Fund Portfolio Holdings here and our July 11 News, "July Money Fund Portfolio Holdings: Repo Jumps to 42%, T-Bills Plunge.") Our latest Weekly MFPH Composition summary shows Government assets dominating the holdings list with Treasuries totaling $1.599 trillion (down from $1.691 trillion two weeks ago), or 43.4%; Repurchase Agreements (Repo) totaling $1.416 trillion (down from $1.598 trillion two weeks ago), or 38.4%, and Government Agency securities totaling $330.9 billion (down from $371.6 billion), or 9.0%. Commercial Paper (CP) totaled $143.4 billion (down from two weeks ago at $171.8 billion), or 3.9%. Certificates of Deposit (CDs) totaled $81.1 billion (down from $104.6 billion two weeks ago), or 2.2%. The Other category accounted for $79.7 billion or 2.2%, while VRDNs accounted for $36.1 billion, or 1.0%. The Ten Largest Issuers in our Weekly Holdings product include: the US Treasury with $1.599 trillion (43.4% of total holdings), Fixed Income Clearing Corp with $457.8B (12.4%), the Federal Home Loan Bank with $205.7 billion (5.6%), JP Morgan with $129.8B (3.5%), BNP Paribas with $100.4B (2.7%), RBC with $89.0B (2.4%), Federal Farm Credit Bank with $81.5B (2.2%), Citi with $80.4B (2.2%), Wells Fargo with $71.7B (1.9%) and Barclays PLC with $50.0B (1.4%). The Ten Largest Funds tracked in our latest Weekly include: JPMorgan US Govt MM ($289.8B), JPMorgan 100% US Treas MMkt ($255.3B), Fidelity Inv MM: Govt Port ($245.2B), Goldman Sachs FS Govt ($241.4B), BlackRock Lq FedFund ($178.2B), Fidelity Inv MM: MM Port ($162.0B), Morgan Stanley Inst Liq Govt ($160.1B), State Street Inst US Govt ($154.6B), BlackRock Lq Treas Tr ($149.4B) and Dreyfus Govt Cash Mgmt ($137.0B). (Let us know if you'd like to see our latest domestic U.S. and/or "offshore" Weekly Portfolio Holdings collection and summary.)
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