BlackRock Busts into Blockchain with Digital Shares for Money Market Fund
BlackRock Applies for Digital Securities in a $150 Million Money Market Fund, Employing Blockchain Technology for Operations
Here's a scoop: global asset titan, BlackRock, is gunning for SEC approval to lay down a new class of digital shares for one of its money market funds. The BlackRock Liquidity Funds Treasury Trust Fund (TTTXX) could soon ride the blockchain wave.
These digital shares, mimicking the fund's performance, are slated to increase transparency about share ownership. And guess who's jumping on board the blockchain express? The Bank of New York Mellon (BNY Mellon). They're responsible for maintaining a "mirror record" of share ownership using blockchain technology, effectively serving as a verification system between investors and the fund.
BlackRock's Blockchain Game Plan
The digital shares will be powered by BlackRock's Treasury Fund, with treasuries and cash worth over $150 million. BNY Mellon will handle the blockchain tech side of things. The blockchain will maintain an updated ownership ledger for verification purposes but, don't worry, that doesn't trump the primary, legally-binding ownership records.
Institutional Investment Requirements for BlackRock's Digital Shares
Want a piece of this blockchain action? Better bring your big boy (or gal) boots. Institutional investors need to commit at least $3 million in digital shares. Transactions are only possible via BNY Mellon, making this a strategic move aimed at big fish in the pond, not your average Joe.
Although the deets like ticker symbols and management fees are still under wraps, BlackRock's push into blockchain could be a game-changer for the financial sector. It's in line with similar moves from industry players like Fidelity, who recently filed for an Ethereum-based share class.
Treasury Tokenization: A Growing Market
BlackRock's foray into blockchain is a long-term bet on the use of blockchain tech to tokenize traditional financial instruments, like treasury bills. Already, the treasury tokenization market is raking in over $6 billion, with BlackRock's own BUIDL controlling more than $2.55 billion in assets.
Regulatory Landscape and its Implications
This filing follows Fidelity's Ethereum-based share class filing, pending approval. If both are given the green light, it could signal a thaw in traditional markets' attitude toward blockchain.
As a heavy-hitter with over $8 trillion in assets under management, BlackRock wields influence to nudge financial products in a new direction. If this venture takes off, these digital shares could slash the smoky veil of opacity in asset management, simplifying things for investors while reducing unnecessary overhead.
Oh, and by the way, did you hear about BlackRock's recent $30.8 million dip into Bitcoin? Seems like institutional confidence in the digital asset realm is growing stronger. Stay tuned!
- BlackRock, a global asset titan, is seeking SEC approval to introduce a new class of digital shares for one of its money market funds, the BlackRock Liquidity Funds Treasury Trust Fund (TTTXX), which could operate on the blockchain.
- The Bank of New York Mellon (BNY Mellon) will maintain a mirror record of share ownership using blockchain technology, acting as a verification system between investors and the fund.
- The digital shares will be powered by BlackRock's Treasury Fund, with assets exceeding $150 million, and BNY Mellon will manage the blockchain technology.
- Institutional investors must commit at least $3 million in digital shares, and transactions will only be possible through BNY Mellon, positioning this venture towards large-scale investors.
- BlackRock's move into blockchain could potentially revolutionize the financial sector, aligning with similar efforts from companies like Fidelity.
- The push towards blockchain is also a long-term bet on the use of blockchain technology to tokenize traditional financial instruments, such as treasury bills, a market already worth over $6 billion.
- Regulatory approvals, such as that for BlackRock and Fidelity's Ethereum-based share classes, could signal a shift in traditional markets' perspective towards blockchain.
- With over $8 trillion in assets under management, BlackRock's entrance into digital assets, as evidenced by its recent $30.8 million Bitcoin investment, indicates a growing institutional confidence in the digital asset realm.
