Source: Cointelegraph
Original text: ( BlackRock applies to launch digital shares tracking its money market fund )
Asset management company BlackRock has submitted an application to create digital ledger technology shares based on one of its money market funds, which will use blockchain technology to maintain equity mirror records for investors.
In a Form N-1A document submitted to the U.S. Securities and Exchange Commission on April 29, BlackRock stated that the DLT shares will track the BlackRock BLF Treasury Trust Fund (TTTXX), which can only be purchased through BlackRock Advisors and BNY Mellon.
The money market fund holds over $150 million in assets, nearly all of which is invested in U.S. Treasuries and cash.
BlackRock stated that these shares "are expected to be purchased and held through BNY Mellon, which plans to use blockchain technology to maintain equity mirror records for clients."
Unlike the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), DLT shares will not be tokenized but will serve as a transparency tool to verify ownership.
BlackRock will continue to maintain traditional book-entry records as the official ownership ledger.
BlackRock did not specify the code or set a management fee for the DLT shares in its filing.
The minimum initial investment requirement for institutional investors to purchase these digital shares is $3 million worth of DLT shares.
This move by BlackRock closely follows Fidelity's application submitted on March 21, which seeks to list Ethereum-based OnChain share classes aimed at tracking the Fidelity Treasury Digital Fund (FYHXX)—a fund of $80 million, almost entirely composed of U.S. Treasuries.
Although the application for OnChain share classes is still pending regulatory approval, Fidelity expects it to take effect on May 30.
Wall Street giants continue to explore blockchain use cases.
In recent years, asset management companies have increasingly turned to blockchain for the tokenization of government bonds, bonds, and private credit.
According to data from rwa.xyz, the current market value of the tokenized government bond market is $6.16 billion, with BlackRock BUIDL leading at $2.55 billion, while the Franklin Templeton-issued Franklin OnChain US Government Money Fund (BENJI) holds over $700 million in real-world assets.
Ethereum (ETH) remains the preferred blockchain for the tokenization of government bond assets, currently hosting tokenized government bond assets valued at over $4.55 billion, while Stellar and Solana rank second and third with $474.9 million and $274.5 million, respectively.
The potential of real-world asset (RWA) tokenization has also been praised by BlackRock CEO Larry Fink, who believes this technology could bring revolutionary changes to the investment field.
Related: The request to reinstate sanctions on Tornado Cash by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) was dismissed by a judge.
