- BlackRock is preparing to launch two tokenized money market funds for stablecoin holders.
- One of the funds will be launched on Ethereum, and the other on multiple networks.
According to SEC filings, BlackRock is preparing to launch tokenized new money market fundsm, designed for investors who keep their cash in stablecoins instead of banks. Holding securities in the MMF will enable the investors to generate some income.
The asset manager is adopting two models according to the filings. First, it will launch a digital version of its $6.1 billion BlackRock Select Treasury Based Liquidity Fund, or BSTBL. The fund will be Ethereum blockchain-based and will operate alongside traditional assets like cash, US Treasury securities, and other short-term debt instruments.
The other fund will be called the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, or BRSRV. This fund is for investors who prefer to have control over their crypto wallets and keep their assets in stablecoins instead of traditional brokerages. The SEC filings show this fund will be available on multiple blockchain networks.
BlackRock’s Tokenization Plan
BlackRock was among the first companies to be involved in tokenization after launching the BlackRock USD Institutional Digital Liquidity Fund, or BUIDL. Launched first on the Ethereum network, it has expanded into other networks. Its value has risen to $2.5 billion.
BlackRock’s CEO has said in the past that every asset class will be tokenized and has been calling for clear regulations from the SEC to enable the tokenization of everything. The company has shown an intention to capture a lion’s share of the market. As ETHNews reported, the company is among more than 50 companies working with the DTCC on a pilot to tokenize $114 trillion in assets.
But BlackRock is not alone; the trend has been accelerating with multiple companies looking to utilize blockchain technology.
Crypto Welcomes Wall Street
Ethereum could be the biggest winner if the SEC gave the green light for large-scale tokenization. The network has become the go-to place for tokenization, accounting for 56% of tokenized real-world asset settlements.
But the network could face competition from networks that offer scale and lower fees. Different companies are experimenting with different blockchain networks for the best solution for their clients. As ETHNews reported, the Stellar network has this week welcomed two tokenized funds by Figure Technology Solutions and State Street Investment Management.
One of the rising stars in Wall Street’s tokenization is the Canton Network, which claims to process $6 trillion monthly for banks, hedge funds and other financial institutions. As we have previously reported, Canton has welcomed some of the world’s largest companies on its network, including JPMorgan and Franklin Templeton.
The launch of these funds has in part been attributed to the signing of the Genius Act, which helped promote mainstream adoption of stablecoins. With the CLARITY Act reaching its final stages, the market could see even more products launch. But stablecoin yield has pitted traditional banks against the crypto community, with banks opposing crypto firms offering such yields, which would compete with regulated products.
Ripple CEO Brad Garlinghouse recently said that the Act will get done and would sail through the Senate, ETHNews reported.
