CEO BriefTokenized Money Market Fund (TMMF)

Playing to win: strategy choices

Set the aspiration, choose where to play, define how to win, then build capabilities.

Winning aspiration
  • Set the institutional standard for regulated on-chain cash in Canada.
  • Deliver MMF economics with 24×7 digital usability.
  • Build trust with CAD-only custody and daily NAV.
  • Create a model regulators and partners can reference.
  • Position Purpose as the category leader in tokenized cash.
Where we will play
  • Primary channels: Canadian digital-asset platforms and broker/dealer partners.
  • Primary users: institutional and treasury clients seeking cash parking.
  • Use cases: 24×7 settlement, collateral mobility, and risk-off positioning.
  • Initial geography: Canada under NI 81-102 compliance.
  • Later expansion: wealth platforms and broader retail distribution.
How we will win
  • Offer a yield-bearing cash-like asset when clients go risk-off.
  • Distribute through Canadian digital-asset platforms for 24×7 access.
  • Use Posted Price + fees to align liquidity and capacity limits.
  • Keep fund operations conventional to reduce adoption friction.
  • Deliver speed and trust without compromising regulation.
Capabilities
  • Permissioned tokenized dealing and transfer controls.
  • Official register reconciliation between on-chain and off-chain records.
  • Broker/LP stablecoin inventory and rebalancing overlay.
  • TATO (Tokenization + Transfer Agent Operator) operating model with clear governance and audit trails.
  • Operational readiness for daily NAV and business-day cash workflows.

Executive decisions required

Four approvals that unlock the strategy.

  • 1
    Approve the concept
    A tokenized unit class on a conventional CAD money market fund.
  • 2
    Approve stablecoin overlay (Day 1)
    24×7 settlement at Posted Price with broker/LP liquidity + capacity controls.
  • 3
    Approve no secondary trading at launch
    Permissioned transfers only in mutual-fund-like scenarios.
  • 4
    Approve TATO direction
    TATO = Tokenization + Transfer Agent Operator; Purpose/affiliate preferred, vendor operator as fallback.
Reminder
Stablecoin never sits in the fund; the fund remains CAD-only.
Definition
TATO = Tokenization + Transfer Agent Operator (role, not necessarily Purpose).
Two-layer stack (Fund vs Digital Dealing)
This is the anchor diagram; everything else is a drill-down.

How we win: high-level flow

Same fund, new rails: a regulated MMF with a digital dealing overlay.

  • Digital layer: tokens + permissioning, 24×7 interactions.
  • Fund layer: CAD subscriptions/redemptions, daily NAV, standard custody.
  • Tokenization adds the official register: on-chain balances reconcile to off-chain records (PII stays off-chain).
  • Bridge: netting/reconciliation/rebalancing between layers on business days.

Core capability: cash subscription

Business-hours workflow: CAD in → NAV set → tokens minted.

  • Dealer sends CAD to the fund custody account by cutoff.
  • NAV is calculated after valuation time.
  • Tokens are minted and delivered after NAV is finalized; interest is paid by minting units next day.
Cash subscription (sequence)

Core capability: cash redemption

Business-hours workflow: tokens in → NAV set → CAD out.

  • Dealer submits redemption; investor delivers tokens via approved process.
  • Tokens are burned after NAV is finalized.
  • CAD proceeds are released to the dealer for onward distribution.
Cash redemption (sequence)
Stablecoin subscription (sequence)

Core capability: stablecoin subscription (Day 1)

Always-on settlement using stablecoin, backed by broker inventory and capacity limits.

  • Dealer/client sends stablecoin on-chain; price = Posted Price + subscription fee.
  • Broker maintains inventory of stablecoin + tokenized units to provide liquidity.
  • Broker rebalances via off-ramp/on-ramp and the cash workflow during business hours.
Important
The fund does not hold stablecoin; this is a digital-layer settlement feature.

Core capability: stablecoin redemption (Day 1)

Always-on redemption to stablecoin; broker inventory provides the 24×7 leg.

  • Investor delivers units; dealer/TATO validates eligibility.
  • Broker provides stablecoin settlement leg (Posted Price + redemption fee).
  • Broker rebalances via business-day cash workflow as needed.
Stablecoin redemption (sequence)

Management systems

Controls and guardrails that keep the fund conventional.

  • No secondary trading at launch; smart contract restricts transfers to permitted scenarios and authorized parties.
  • Fund assets stay with a regulated off-chain custodian; tokens are held in approved custody arrangements.
  • Stablecoin workflow is manager-directed, capacity-limited, fee-bearing, and reconciles back to fund dealing via the business-day bridge.
Controls checklist
Fund holds stablecoin?
No (broker overlay only)
Secondary trading at launch?
No
PII on-chain?
No (off-chain register)
Transfers permissioned?
Yes
Transfer rules
Transfers only in mutual-fund-like situations (e.g., same beneficial owner across approved dealers).

Core capability choice: TATO operating model

Keep the role constant while choosing Purpose/affiliate vs vendor.

  • Preferred: Purpose / Purpose affiliate as TATO (more control, tighter integration, strategic capability).
  • Alternative: Vendor TATO (faster to stand up, established tooling, outsourced ops).
  • In both cases: diagrams stay role-based; governance, controls, and custody boundaries remain the same.
Purpose / affiliate as TATO
Vendor TATO
Control & integration
High control, tighter integration with fund ops.
Lower control, vendor roadmap dependencies.
Speed to launch
Moderate (build + integrate).
Faster (turnkey tooling).
Strategic capability
Builds long-term internal moat.
Outsourced capability.
Operational risk
Owned internally; requires resourcing.
Shared with vendor; reliance on SLAs.
Decision required
Choose the target TATO model for launch (with a backup option if needed).

Decision checklist

Confirm the five choices are aligned, then approve the four decisions.

  • 1
    Approve the concept
    A tokenized unit class on a conventional CAD money market fund.
  • 2
    Approve stablecoin overlay (Day 1)
    24×7 settlement at Posted Price with broker/LP liquidity + capacity controls.
  • 3
    Approve no secondary trading at launch
    Permissioned transfers only in mutual-fund-like scenarios.
  • 4
    Approve TATO direction
    TATO = Tokenization + Transfer Agent Operator; Purpose/affiliate preferred, vendor operator as fallback.
Recommended path
Purpose/affiliate as TATO, Day‑1 stablecoin overlay, and no secondary trading at launch.