A tokenised money market fund pledged as CCP margin: four paths to cash after a default
A test build posts tokenised MMF units to a CCP by pledge and enforces after a member default. We then test four ways the CCP can turn the units into cash: a normal redemption, a partial redemption with a repo, a sale within a band around the NAV, and an in-kind redemption into Treasury bills. A gated redemption covered by a same-day repo was also run on a live ledger.
- Published
- 17 October 2026
- Author
- Simo Lamine
- Regions
- Global
- Reading time
- 9 min
4
paths to cash tested from the same post-default position
±5 bp
band around the last NAV for a secondary sale of the units
50%
redemption gate covered by a same-day repo (live ledger run)
57
checks in the live run: ledger state equals simulated state
Disclosure: the editor is involved in industry work on this topic. This publication draws only on public sources and the editor’s own analysis.
The question
A clearing member that keeps its liquidity in a money market fund usually has to redeem units and post cash when margin is called. Posting the fund units directly avoids that redemption.
For a CCP, the hard part is what happens after a default. It has to turn the units into cash within its default timeline, possibly on the same day the fund is under pressure. A redemption is only one way out. This build tests four, and asks which of them depend on the fund paying. It does not test every option: waiting for the next dealing day, an auction of the units, or using them at a central bank are outside this build.
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Sources
- 1SEC, WisdomTree Digital Trust et al.: order under the Investment Company Act (Release No. 35968), 23 February 2026.
- 2GDF and ISDA, Unlocking Capital with U.S. Tokenized Money Market Funds for Collateral Mobility, July 2026.
Test network · not audited · not for production use. Labs builds are experimental and show mechanics, not production performance.
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