Axiology and VIALET Partner to Launch Tokenised Money Market Funds for Client Safeguarding

Axiology and VIALET have partnered to integrate tokenised money market funds into the safeguarding and treasury operations of the Lithuanian electronic money institution. For fintech professionals, this move signals a shift toward using distributed ledger technology to solve the liquidity-yield trade-off, allowing payment firms to diversify asset exposure while maintaining immediate access to settlement cash.

What was announced

VIALET, which processes €6 billion in gross payment volume annually and manages approximately €150 million in assets, currently relies on credit institution accounts and investment-grade government bonds for safeguarding. Through this partnership, the electronic money institution (EMI) will leverage Axiology’s infrastructure to gain access to eligible tokenised money market funds (MMFs). This allows VIALET to move beyond individual bank exposure and improve liquidity management while creating opportunities to earn a return on asset holdings.

A critical component of this arrangement is how it addresses the friction between standard fund redemption cycles and the 24/7 nature of e-commerce. Payment providers face strict daily settlement deadlines that often clash with standard MMF redemption cut-offs. Axiology addresses this through a separate arrangement with an eligible liquidity provider, enabling VIALET to access cash intraday without changing the underlying funds' redemption terms. This mechanism supports the T+0 settlement requirements essential for modern payment businesses.

The partnership is positioned against a backdrop of rapid institutional adoption of digital assets. According to European Central Bank data, the global market for tokenised MMFs surged by approximately 110% in 2025, reaching around €7 billion by February 2026. The collaboration utilizes Axiology’s regulated DLT Trading and Settlement System, which operates under the EU DLT Pilot Regime within Lithuania’s regulatory framework.

"For payment institutions, safeguarding is not just about asset quality, funds must also be accessible when payments need to be settled. By pairing regulated money market instruments with intraday liquidity provider under one roof, institutions can diversify their safeguarding arrangements without adding unnecessary operational complexity."

Marius Jurgilas, CEO of Axiology

The companies involved

Vilnius-headquartered VIALET is a prominent European electronic money institution focused on payment processing and treasury management. With a significant footprint in the Baltic fintech ecosystem, the company serves a global client base, processing billions in volume over the trailing twelve months. VIALET operates within a strict regulatory environment that requires the safeguarding of client funds, a process traditionally managed through standard bank deposits or government securities.

Axiology is a regulated European capital markets infrastructure provider specializing in distributed ledger technology (DLT). The firm operates a DLT Trading and Settlement System (TSS) under the EU DLT Pilot Regime, a regulatory framework designed to test the issuance, trading, and settlement of digital securities. Axiology has positioned itself as a bridge between traditional finance and tokenised assets, focusing on providing institutional-grade infrastructure for the lifecycle of digital financial instruments. Both companies are key players in Lithuania's fintech sector, which has become a primary hub for regulated digital asset innovation in the Eurozone.

What FF News has reported before

FF News has closely followed Axiology’s expansion into tokenised capital markets. The firm recently joined the ECB Pontes launch and Appia contact group to help shape the future of digital asset infrastructure. This followed the strategic appointment of former SDX CEO David Newns to its board to scale its digital asset operations. Editorial analysis has previously highlighted how Axiology challenges legacy treasury models by eliminating the traditional trade-off between liquidity and yield. Additionally, the firm’s expertise has been sought in broader market discussions, including industry commentary on the UK’s digital gilt pilot.

What this means

This partnership marks a transition for tokenisation from a theoretical "pilot" phase to a functional tool for corporate treasury. For EMIs, the pressure to maintain high-quality liquid assets while generating yield in a fluctuating interest rate environment is constant. By using DLT to enable intraday liquidity on MMFs, Axiology is putting pressure on traditional custodian banks that still rely on T+1 or T+2 settlement cycles. The move raises a significant question for the sector: as tokenised MMFs become a standard safeguarding tool, will traditional banks be forced to accelerate their own DLT adoption to prevent a mass migration of EMI deposits toward more efficient tokenised alternatives?