BlackRock, one of the largest asset management companies in the world, recently submitted an application to the U.S. Securities and Exchange Commission (SEC) to launch its $150 billion 'Treasury Trust Fund' 'DLT Digital Shares'.
BlackRock actively embraces 'asset tokenization'
The so-called 'DLT Digital Shares' refer to digital shares that use Distributed Ledger Technology to track ownership. According to the N-1A form submitted this Monday, these DLT shares will only be issued and distributed by BNY Mellon. The minimum threshold for institutional investors to purchase DLT shares is $3 million, but there is no minimum requirement for subsequent additional investments.
The filing document states:
“Although the fund is not currently utilizing blockchain technology nor investing in crypto assets, ... [BNY Mellon] plans to use blockchain technology to create a mirror record of shareholdings for its clients.”
According to BlackRock's website, as of April 29, 2025, the total assets of the BlackRock Liquidity Fund – Treasury Trust Fund are approximately $150.1 billion. Currently, the prospectus for this DLT shares program still needs to be reviewed and modified by the SEC and has not been finalized.
Promoting the pace of 'investment democratization'
BlackRock's initiative aligns with its CEO Larry Fink's previous public statements on asset 'tokenization'. In his annual letter to shareholders in March 2025, Larry Fink pointed out:
“Asset tokenization will fundamentally change the way we invest. The market will no longer need to halt trading, transactions will no longer take days to complete, but can be settled in seconds. The billions of dollars frozen due to settlement delays can be immediately reinvested in the market, further driving economic growth.”
Larry Fink emphasized that tokenization can promote investment democratization, as it allows for fractional ownership, strengthens digital shareholder voting rights, and opens up profit opportunities to a broader range of investors.
However, he also pointed out that the current identity verification mechanisms for tokenized assets are still not adequate, which is a major bottleneck for widespread application. Once this issue is resolved, he expects tokenized funds to become a familiar tool for investors, similar to ETFs (exchange-traded funds). In addition to BlackRock, other large financial institutions, including JPMorgan, State Street Bank, and Franklin, are also actively embracing blockchain and asset tokenization technologies. These institutions have initiated fund tokenization or related businesses.
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