Key Takeaways
- • Axiology, a capital markets infrastructure provider, has partnered with Lithuanian electronic money institution (EMI) VIALET to enable use of tokenised money market funds (MMFs) for client fund safeguarding and corporate treasury management.
- • The arrangement is designed to help EMIs balance asset quality and diversification while keeping immediate access to liquidity and mitigating safeguarding challenges caused by MMF cut-off times.
- • Axiology has a separate arrangement with an eligible liquidity provider that gives access to intraday cash without changing the underlying funds' redemption terms.
- • VIALET gains access to Lithuania-regulated digital securities infrastructure through Axiology's DLT trading and settlement system, operated under the EU DLT Pilot Regime.
Summary
Axiology, a capital markets infrastructure provider, has partnered with VIALET, a Vilnius-headquartered electronic money institution (EMI) licensed in Lithuania, to enable the use of tokenised money market funds for client fund safeguarding and corporate treasury management, according to Asset Servicing Times.
The collaboration is aimed at helping EMIs balance asset quality and diversification while maintaining immediate access to liquidity. A central issue it targets is the safeguarding challenge created by MMF cut-off times, which can prevent funds from being available when payments need to settle.
To address this, Axiology has a separate arrangement with an eligible liquidity provider that allows access to cash intraday without changing the redemption terms of the underlying funds. Axiology CEO Marius Jurgilas said that for payment institutions, safeguarding is not just about asset quality, and that funds must also be accessible when payments need to be settled. He added that pairing regulated money market instruments with an intraday liquidity provider under one roof allows institutions to diversify safeguarding arrangements without adding unnecessary operational complexity.
VIALET will also gain access to Lithuania-regulated digital securities infrastructure through Axiology's distributed ledger technology trading and settlement system, which operates under the EU DLT Pilot Regime. VIALET CEO Mantas Stalisnas said Axiology met the firm's requirements for "same-day liquidity, high asset quality, regulatory clarity, and lean operations." He also said VIALET wants to build with Lithuanian innovators and foster the fintech ecosystem it belongs to.
The collaboration is aimed at helping EMIs balance asset quality and diversification while maintaining immediate access to liquidity. A central issue it targets is the safeguarding challenge created by MMF cut-off times, which can prevent funds from being available when payments need to settle.
To address this, Axiology has a separate arrangement with an eligible liquidity provider that allows access to cash intraday without changing the redemption terms of the underlying funds. Axiology CEO Marius Jurgilas said that for payment institutions, safeguarding is not just about asset quality, and that funds must also be accessible when payments need to be settled. He added that pairing regulated money market instruments with an intraday liquidity provider under one roof allows institutions to diversify safeguarding arrangements without adding unnecessary operational complexity.
VIALET will also gain access to Lithuania-regulated digital securities infrastructure through Axiology's distributed ledger technology trading and settlement system, which operates under the EU DLT Pilot Regime. VIALET CEO Mantas Stalisnas said Axiology met the firm's requirements for "same-day liquidity, high asset quality, regulatory clarity, and lean operations." He also said VIALET wants to build with Lithuanian innovators and foster the fintech ecosystem it belongs to.
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