BlackRock is introducing a digital share class for its $150 billion Treasury Trust fund, utilizing blockchain technology through BNY Mellon. The new shares will use blockchain to mirror share ownership records, potentially leading to broader adoption of digital assets.
BlackRock’s $150B Treasury Trust Fund Set to Tokenize Shares Using Blockchain
BlackRock is introducing a digital share class for its $150 billion Treasury Trust fund, utilizing blockchain technology through BNY Mellon. The new shares will use blockchain to mirror share ownership records, potentially leading to broader adoption of digital assets.
BlackRock is a multinational investment management corporation founded in 1988 by Larry Fink.
Headquartered in New York City, the company has grown to become one of the largest asset managers globally, with over $9 trillion in assets under management.
BlackRock's success can be attributed to its innovative approach to investing and its ability to adapt to changing market conditions.
The company offers a range of investment products, including exchange-traded funds (ETFs), mutual funds, and index funds.
Benefits of Tokenization in Traditional Finance
The introduction of tokenized shares by BlackRock marks an incremental step towards the integration of blockchain technology into traditional finance. This move is part of a growing trend where firms are experimenting with creating blockchain-based representations of real-world assets (RWAs), bringing the traditional finance world rapidly into the crypto and decentralized finance (DeFi) environment.
Blockchain is a decentralized, digital ledger that records transactions across multiple computers.
It uses cryptography to secure and verify data integrity.
This technology enables secure, transparent, and tamper-proof storage of data.
Blockchain's key features include immutability, transparency, and decentralization.
It has various applications in finance, supply chain management, and voting systems.
How Tokenization Works
The new ‘DLT Shares,’ short for distributed ledger technology, won’t hold cryptocurrency. BNY Mellon, the fund’s exclusive distributor, intends to use blockchain to mirror share ownership records, an incremental step that could pave the way for broader adoption of tokenized cash, digital assets, or blockchain-based settlement infrastructure in traditional finance.
BlackRock’s Liquidity Treasury Trust Fund
BlackRock‘s Liquidity Treasury Trust Fund is part of the firm’s Liquidity Funds suite and managed over $150 billion in assets as of April 29. The DLT share class has a minimum investment requirement of $3 million for institutional buyers, with no minimums on subsequent purchases.
Tokenization Trends and Outlook
The move isn’t BlackRock’s first into tokenization. Its blockchain-native BUIDL fund, created in partnership with Securitize, now manages over $1.7 billion in assets and recently expanded onto Solana. CEO Larry Fink has consistently emphasized his belief in the long-term potential of tokenization and decentralized finance.
BlackRock is preparing to bring blockchain to the back office of one of its largest funds by filing to offer a digital share class of its $150 billion Treasury Trust money market fund through BNY Mellon. The new shares will use blockchain to mirror share ownership records, potentially leading to broader adoption of digital assets.
The U.S. risks ceding its financial dominance if it fails to control its debt — a vulnerability that could accelerate investor interest in alternatives like bitcoin (BTC). ‘Decentralized finance is an extraordinary innovation,’ Fink wrote. ‘It makes markets faster, cheaper, and more transparent.‘ Yet that same innovation could undermine America’s economic advantage.
