Key facts
- BlackRock launched tokenized share classes for European money market funds on Ethereum.
- The new offerings provide institutional investors 24/7 access to regulated cash products in euros, sterling, and U.S. dollars.
- The tokens are backed 1:1 by traditional shares and enable near-real-time peer-to-peer transfers.
- JPMorgan's Kinexys Digital Assets is the tokenization service provider for the initiative.
- This expansion follows BlackRock's earlier U.S. launches of tokenized money market funds.
BlackRock has expanded its tokenization efforts by launching tokenized share classes for select European money market funds within its $311 billion Institutional Cash Series (ICS) platform. Built on Ethereum and utilizing JPMorgan's Kinexys Digital Assets technology, this initiative provides institutional investors with programmable, 24/7 access to regulated cash products denominated in euros, sterling, and U.S. dollars.
Each token issued is backed one-to-one by a traditional share, and while the shareholder register remains the legal record of ownership, the tokens facilitate near-real-time peer-to-peer transfers between pre-approved institutional wallets. This move follows BlackRock's earlier launches of tokenized money market funds in the U.S., signaling a broader strategy to convert its cash management franchise into blockchain-native forms.
The new offerings aim to provide operational efficiencies, such as settlement outside traditional market hours, and strengthen Ethereum's position as a settlement layer for institutional real-world assets. BlackRock's existing BUIDL fund already holds over $2.6 billion across multiple blockchains. Competitors like Aviva Investors and Ondo are also active in the tokenization space, with Ondo having secured FINRA approval for tokenized stocks and ETFs in the U.S.
Beccy Milchem, Global Head of Cash Distribution and Head of International Cash Management for BlackRock, noted a growing demand for high-quality reserve assets that function across both traditional and digital markets, a demand the new ICS tokenized classes aim to meet.