- BlackRock launches blockchain-based share class for ownership tracking.
- Targeted at institutional clients via BNY Mellon.
- Ethereum infrastructure gains relevance for asset digitization.
BlackRock, the world’s largest asset manager, has launched a new digital share class for its Liquidity Funds Treasury Trust Fund, valued at $150 billion, utilizing blockchain technology for ownership tracking.
BlackRock’s integration of blockchain for its $150 billion fund underscores the asset manager’s commitment to technological innovation. This move aims to streamline ownership recordkeeping, potentially transforming capital market efficiencies.
The $150 Billion BlackRock Liquidity Funds Treasury Trust Fund
BlackRock has partnered with BNY Mellon, which acts as the distributor, handling blockchain-based share tracking. The fund supports a stable $1/share net asset value, and the minimum investment for institutional clients is $3 million.
CEO Larry Fink advocates blockchain’s potential in financial markets, emphasizing that tokenization can streamline transactions and expedite economic reinvestment. “Tokenization could speed up transactions, remove delays, and quickly reinvest money back into the economy to help it grow.” – source
Despite the blockchain integration, the fund will not engage in cryptocurrency transactions or hold such assets directly. However, the move enhances blockchain’s credibility in institutional settings.
Industry feedback suggests Ethereum could gain significance as a platform for asset management. BlackRock’s initiative affirms blockchain’s growing role in authoritative financial environments.
The decision signals changes in how traditional financial structures could adapt. However, there will be no immediate shifts in DeFi TVL or staking flows, as the focus remains strictly on ownership tracking, not on direct cryptocurrency exposure. This move is part of a broader trend of financial institutions embracing digital ledger technology without direct crypto investment.
Potential outcomes include further collaborations with blockchain platforms, especially Ethereum, and increased industry trust in digitized financial solutions. The initiative mirrors historical trends of gradual fintech adoption, highlighting BlackRock’s SEC Filing position as a leader in digital asset integration.
