BlackRock Launches Two Tokenized Money Market Funds, Expanding On-Chain Cash Management Footprint

BlockBeats News, August 3rd, BlackRock announced the launch of two tokenized money market products, namely the BlackRock Select Treasury Based Liquidity Fund (BSTBL) with on-chain shares based on the Ethereum blockchain, and the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV).

According to the announcement, BSTBL is a tokenized share version of an existing money market fund, where investors can transfer through approved wallets in compliance with regulatory requirements. The Bank of New York Mellon (BNY Mellon) will serve as the transfer agent and tokenization service provider for BSTBL.

BRSRV, on the other hand, is a new type of tokenized money market fund targeting digital asset institutional investors, supporting daily dividend reinvestment and multi-blockchain access, and can be used in various digital asset scenarios including stablecoin reserve management. Securitize will act as the transfer agent and tokenization service provider for this fund.

Both products aim to provide investors with returns by investing in cash, short-term US Treasury bonds, and overnight repurchase agreements backed by US Treasuries, while maintaining liquidity and principal stability.

Jon Steel, Global Head of Product and Platform for BlackRock's Cash Management Business, stated that the US money market fund industry has exceeded $8.4 trillion, with investors focusing on liquidity, capital preservation, and yield. As demand grows for high-quality reserve assets through stablecoins and other tokenized financial products, tokenized money market funds will offer customers a new option to bridge traditional finance with the digital market.

Currently, BlackRock's Cash Management Group manages nearly $1.1 trillion in cash strategy assets.