BlackRock unveils tokenized money market funds on Ethereum

BlackRock launched two tokenized money market products, pushing its blockchain-based cash management strategy beyond earlier experiments.

The BlackRock Select Treasury Based Liquidity Fund, or BSTBL, will issue tokenized shares of an existing money market fund on Ethereum. Institutional investors can move those shares between approved wallets, subject to compliance checks. BNY Mellon acts as transfer agent and tokenization service provider, linking the fund's shareholder records to the on-chain infrastructure.

BSTBL invests in cash and short-term U.S. Treasury securities. It also holds overnight repurchase agreements backed by Treasuries. The portfolio aims to preserve principal and liquidity while generating returns from short-duration government debt. The structure differs from a stablecoin: investors hold fund shares, not tokens designed to maintain a fixed redemption value. Returns depend on the income the underlying portfolio generates.

The second product, the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, or BRSRV, targets digitally native institutional investors. It will support access across multiple blockchains, not just Ethereum. The fund reinvests dividends daily, keeping income within the product. BlackRock said BRSRV could be used in stablecoin reserve management. Stablecoin issuers need liquid, low-risk assets to back redemptions, making Treasury bills and Treasury-backed repos common reserve instruments.

Securitize will serve as BRSRV's transfer agent and tokenization service provider. The company already supplies infrastructure for tokenized securities and worked with BlackRock on earlier blockchain-based investment products. Securitize recently gained SEC adviser status.

BRSRV uses the same core asset categories as BSTBL: cash, short-term U.S. government debt and overnight repurchase agreements collateralized by Treasuries.

The two launches extend BlackRock's involvement in real-world asset tokenization beyond individual products. crypto.news reported in July that BlackRock joined a Depository Trust & Clearing Corporation pilot testing tokenized stocks and U.S. Treasuries. The initiative involves securities already held within DTCC's custody framework, which safeguards about $114 trillion in assets. JPMorgan, Goldman Sachs, Vanguard, the New York Stock Exchange and nearly 40 other financial firms are also participating. The pilot lets institutions test blockchain-based representations of traditional securities without moving the underlying assets outside established market infrastructure.

For U.S. institutions, that model may reduce the operational gap between conventional securities and on-chain markets. Wallet transfers, investor eligibility and access will remain subject to regulatory requirements rather than operating as permissionless crypto transactions.

BlackRock's cash management group now oversees close to $1.1 trillion for corporations, banks, insurers, foundations and public institutions. Its scale could help introduce tokenized fund shares to investors already using its traditional liquidity products.

BlackRock has also expanded its position in regulated cryptocurrency markets through the iShares Bitcoin Trust, its U.S. spot Bitcoin exchange-traded fund. The SEC approved a fourfold increase in the position limit for options tied to the fund, from 250,000 to 1 million contracts, crypto.news reported.

The tokenized fund launches represent a separate part of BlackRock's digital-asset strategy. Rather than providing Bitcoin exposure, BSTBL and BRSRV place traditional cash-management assets on blockchain infrastructure.

BlackRock's cash management group oversees close to $1.1 trillion. The DTCC pilot, which BlackRock joined in July, tests tokenized stocks and Treasuries within existing custody infrastructure.