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BlackRock tokenizes $311B of European money market funds on Ethereum

The tokenized share classes cover euro, sterling and US dollar strategies across six BlackRock Institutional Cash Series funds, with marketing limited to professional and qualified investors.

Reported · Written up by our desk · Market Structure

BlackRock has launched tokenized share classes for a group of European money market funds totaling $311 billion, marking its first on chain fund access in Europe, according to Decrypt.

The new on-chain share classes span six BlackRock Institutional Cash Series funds in euro, sterling and US dollar versions, and they are offered in both distributing and accumulating forms. Each Ethereum token represents a share in the underlying fund, while the official shareholder register remains with the funds transfer agent.

Tokens are minted on Ethereum using Kinexys, J.P. Morgans blockchain unit, which handles minting and burning and bridges on chain activity with the traditional share register. BlackRock said smart contracts enable near real time visibility and round the clock peer to peer transferability between approved investor wallets.

The share classes target professional and qualified clients rather than retail investors, and are available across multiple jurisdictions including the UK and several EU countries. BlackRock also said the tokenized versions are based on UCITS regulated public debt constant net asset value money market funds designed to preserve the same standards for capital preservation, liquidity and risk management as existing share classes.

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