The asset manager BlackRock has submitted an application to create digital ledger technology shares from one of its money market funds, which will use blockchain technology to maintain a parallel record of share ownership for investors.
The DLT shares will track BlackRock's BLF Treasury Trust Fund (TTTXX), which can only be purchased through BlackRock Advisors and The Bank of New York Mellon (BNY), according to the firm's filing of Form N-1A on April 29 with the Securities Commission.
The money market fund holds assets worth over $150 million, invested almost entirely in U.S. Treasury bills and cash.
BlackRock stated that the shares 'are expected to be bought and held through BNY, which intends to use blockchain technology to maintain a parallel record of share ownership for its clients.'
Unlike the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the DLT shares will not be tokenized, but will be used as a transparency tool to verify ownership.
BlackRock will continue to maintain traditional book-entry records as the official ownership ledger.
BlackRock did not propose a ticker or establish a management fee for the DLT shares in its filing.
A minimum initial investment of $3 million in DLT is required for institutions wishing to purchase the digital shares.
BlackRock follows in the footsteps of Fidelity's filing on March 21 to list an OnChain class of shares based on Ethereum, which aims to track the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund composed almost entirely of U.S. Treasury bills.
While the filing for the OnChain class of shares is pending regulatory approval, Fidelity expects it to take effect on May 30.