Lithuania's VIALET is adding tokenised money market funds from Axiology to its safeguarding arrangements, alongside bank accounts and government bonds. A deal with a liquidity provider gives it cash intraday without changing the funds' redemption terms.
Photo: Mantas Staliūnas, CEO of VIALET, left, and Marius Jurgilas, CEO of Axiology, right.
VIALET is a Lithuanian electronic money institution with around €150 million in assets under management and a gross payment volume of €5.5 billion over the trailing twelve months. The company is required to safeguard its client funds, and has so far done so through bank accounts and high-grade government bonds. Through a deal with Axiology, a regulated capital markets infrastructure provider in Lithuania, VIALET now gains access to tokenised money market funds as a third option for safeguarding.
The aim of the deal is to diversify risk away from individual banks while giving VIALET a way to earn a return on the funds it must keep safely accessible. Through Axiology's infrastructure, the company gains access to eligible tokenised money market funds, intended to improve liquidity management and broaden diversification beyond what it has today.
Axiology operates a regulated system for trading and settling digital securities under the EU's DLT Pilot Regime, giving VIALET access to this infrastructure within Lithuania's regulatory framework.
The challenge the deal addresses is that money market funds normally carry their own redemption cut-offs, while e-commerce and payment processing run around the clock with strict same-day settlement deadlines. That holds regardless of whether the fund units are tokenised.
Axiology addresses this through a separate arrangement with an external liquidity provider, giving VIALET access to cash intraday without changing the funds' standard redemption terms. That lets the company hold funds with better returns while keeping money available when payments need to settle.
– 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 an intraday liquidity provider under one roof, institutions can diversify their safeguarding arrangements without adding unnecessary operational complexity, says Marius Jurgilas, chief executive of Axiology.
Mantas Staliūnas, chief executive of VIALET, says the company set four non-negotiable requirements for any solution: same-day liquidity, high asset quality, regulatory clarity and lean operations.
– We set four non-negotiable requirements: same-day liquidity, high asset quality, regulatory clarity and lean operations. Axiology met all four. As a Vilnius-headquartered electronic money institution, we also want to build with Lithuanian innovators and support the fintech ecosystem we belong to, says Staliūnas.
The deal comes as tokenised money market funds gain traction in institutional finance. According to the European Central Bank, the global market for such funds grew by around 110 percent in 2025, reaching roughly €7 billion by February 2026.
Sources: Axiology
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