BlackRock plans to use blockchain to track ownership of shares in its Treasury Trust Fund.
The new share class will not be tokenized but will add transparency through blockchain records.
Institutions must invest at least 3 million dollars to access the new digital ledger share class.
Asset manager BlackRock has filed to offer digital ledger technology (DLT) shares tied to its Treasury Trust Fund. The new share class will use blockchain to mirror ownership records. The move appears in an April 29 SEC filing.
https://twitter.com/Cointelegraph/status/1917368444216819750 DLT Shares Will Mirror Traditional Records
These DLT shares will track the BLF Treasury Trust Fund (TTTXX), which holds over $150 million in assets. Most assets in the fund consist of U.S. Treasury bills and cash. Investors can only purchase these shares through BlackRock Advisors and BNY Mellon.
BNY Mellon plans to use blockchain to maintain a parallel record of share ownership. However, BlackRock will still rely on traditional book-entry records as the official ledger.
No Tokenization, Just Added Transparency
Unlike BlackRock’s BUIDL fund, these DLT shares will not be tokenized. Instead, the blockchain will serve as a transparency tool. Ownership will remain recorded in the firm’s standard systems.
BlackRock did not include a management fee or ticker symbol for the new DLT shares in the SEC filing.
High Minimum Investment for Institutions
Institutional investors must commit at least $3 million to access the DLT share class. There are no minimum requirements for future investments beyond the initial amount.
This filing follows Fidelity’s March 21 request to list an Ethereum-based OnChain share class. That class will track the $80 million Fidelity Treasury Digital Fund (FYHXX). It also invests heavily in U.S. Treasury bills. Fidelity expects its filing to become effective on May 30, pending SEC approval.
Blockchain Adoption Grows in Asset Management
Asset managers have increasingly turned to blockchain for Treasury and private credit tokenization. The tokenized Treasury market is valued at $6.16 billion. BlackRock’s BUIDL fund leads with $2.55 billion in assets.
Franklin Templeton’s BENJI fund holds over $700 million. Ethereum hosts the largest portion of tokenized assets at $4.55 billion. Stellar and Solana networks follow, with $474.9 million and $274.5 million, respectively.
BlackRock Aligns With Broader Strategy
BlackRock’s filing reflects its wider interest in blockchain’s potential. The firm continues to explore digital investment infrastructure. Other financial giants like JPMorgan and State Street have also entered this space.
Calastone, based in London, recently adopted Fireblocks’ blockchain tools. The integration will help tokenize any fund listed on its platform. Asset managers see this shift as a way to modernize fund management and recordkeeping.
