BLACKROCK FILES TO TOKENIZE ITS $150B MONEY FUND
- BlackRock, the world’s largest asset manager, filed with the SEC to introduce a blockchain-powered share class, dubbed "DLT Shares," for its $150 billion Treasury Trust Fund.
Key Details:
- The DLT Shares will be exclusively distributed through BNY Mellon, leveraging blockchain to track ownership of the fund’s shares.
- This new offering targets institutional investors, with a minimum investment set at $3 million.
- The Treasury Trust Fund aims to maintain liquidity by investing in cash and short-term government securities, ensuring a stable $1 per share value for investors.
- By utilizing blockchain, BlackRock seeks to streamline transactions, potentially speeding up asset transfers and enhancing liquidity.
- CEO Larry Fink has previously emphasized how tokenization could speed up processes, remove delays, and allow funds to reinvest more efficiently.
BUIDL on Ethereum:
- The filing follows BlackRock's earlier launch of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on Ethereum, which tokenizes US Treasury securities.
- While Ethereum has faced price struggles recently, the blockchain’s dominance in tokenizing real-world assets—holding 56% market share—positions it as the industry standard for asset tokenization.
- BlackRock’s DLT Shares could pave the way for even greater institutional adoption of Ethereum and blockchain in traditional finance.
Images: BlackRock X platform and Fortune