Amundi Enters Tokenization Era as Ethereum Regains Momentum Amid Market Volatility

Amundi, Europe’s leading asset manager, has taken a significant step in the financial world by tokenizing its money market fund on the Ethereum blockchain. This innovative strategy combines traditional financial instruments with cutting-edge blockchain technology, promising benefits such as instant order execution and transparent inventory management.

While Ethereum remains the dominant platformfor real-world assets, its price has also proven resilient, recently reclaiming the $3,000 mark. In this press review, we examine the latest developments in the world of cryptocurrenciesand their impact on the market.

Ethereum adoption: Amundi follows BlackRock into the RWA sector

Amundi, Europe’s market leader with €2.2 trillion in assets under management, has launched its money market fund “Amundi Funds Cash EUR” on the blockchain for the first time. The financial giant is pursuing a dual strategy, combining traditional financial infrastructure with modern blockchain technology. The technical implementation uses a hybrid model, with partner CACEIS providing its private distributed ledger infrastructure for the internal administration and tokenization of the fund units.

The first test transaction was successfully recorded on the Ethereum network on November 4th. Amundi highlights the advantages of blockchain technology, including instant order execution and the ability to hold shares as tokenized assets. Ethereum remains the dominant player in the real-world asset (RWA) sector, with a market share of approximately 64 percent.

“The connection to Ethereum primarily serves the purpose of seamless traceability and transparent inventory management of the fund units,” said Amundi.

Ethereum price recovers: $3,000 regained

Ethereum’s price has reclaimed the psychologically important $3,000 mark and is currently trading at $3,026. This recovery is accompanied by a slight increase in sentiment, although the Fear & Greed Index remains in fear territory at 18. Institutional inflows into Ethereum ETFsare showing initial positive signs, as investors selectively rebuild positions.

Large wallets purchased approximately 440,000 ETH last week, a historically common occurrence when the price falls below their cost base. However, caution remains warranted, as liquidation zones between $2,800 and $2,700 could trigger short-term pullbacks.

“The liquidation heatmap shows a high concentration of open positions, which could lead to increased volatility during pullbacks,” analysts warn.

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(Featured image by Morthy Jameson via Unsplash)

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First published in Coin Kurier. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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