Being able to transfer fund shares on a blockchain is distinct from being able to convert them into payment funds when needed. Tempo’s blog explains how banks might facilitate exchanges between stablecoins, deposits, and tokenized funds, taking this difference into account. This is not an announcement of new product launches or participating banks. The focus is on funds that companies hold for payment purposes. The idea is to temporarily move these funds into short-term financial asset funds when idle, and then convert them back into stablecoins or similar instruments when payments to counterparties are required. The tokenized fund referred to here is the representation of fund shares recorded on a blockchain. But what if a payment is needed outside of bank or fund business hours? Under Tempo’s proposed model, pre-funded counterparties act as exchange partners. A company can transfer its fund shares and receive stablecoins or other forms of payment directly from these counterparties, bypassing the need to wait for the fund’s standard redemption process. However, this does not eliminate fund redemption cut-off times. It requires that counterparties are available to provide pricing and liquidity outside business hours. It is crucial not to assume that merely because fund shares can be transferred on a blockchain, they can always be cashed out under desired conditions. Even if exchanges can be executed on a single interface, the underlying rights differ. Stablecoins represent a claim against the issuer, deposits represent a claim against the bank, and fund shares represent a claim against the fund itself. Moreover, the term “tokenized MMF” encompasses funds subject to MMF regulations, funds operating under different regulatory frameworks, and bond-like products that constitute loans to the issuer. You cannot assume identical protections or redemption terms simply because the names appear similar. Tempo explains that some funds can distribute returns even for very short holding periods. This is not a universal feature of all tokenized funds—it depends on conditions such as eligible investors, geographic restrictions, and compatible wallet types. When reviewing bank-focused proposals, it is essential to distinguish between the convenience of exchange and the underlying rights, liquidity provision, and usage conditions.