> For the complete documentation index, see [llms.txt](https://docs.xft.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.xft.finance/learn/case-studies/money-market-funds.md).

# Money Market Funds

**Traditional Money Market Fund Process:**

1. Unit A initiates MMF redemption
2. Unit A approves MMF redemption
3. MMF redemption settlement (T+0 or T+1)
4. Unit A initiates MMF payment to Unit B
5. Unit A approves payment to Unit B
6. Unit B approves MMF purchase and associated payment
7. Funds arrive at MMF, begin earning interest (T+0 to T+1)

**Tokenized Money Market Fund Process:**

1. Unit A initiates transfer of MMF tokens to Unit B (utilizing ERP2 tokens and/or a portal)
2. Unit A approves transfer of MMF tokens to Unit B
3. Funds arrive in Unit B's wallet and start earning yield instantly, with no yield lost during transaction