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BlackRock to launch tokenized money market funds in Europe via JPMorgan
The tokenized funds will use JPMorgan’s Kinexys platform and represent interests in underlying money market funds that can be transferred around the clock between approved digital wallets.
BlackRock is bringing tokenized money market fund shares to Europe through JPMorgan’s Kinexys blockchain platform, with the offering expected to include share classes denominated in pounds, euros, and US dollars. Cointelegraph reports the tokenized versions will be tied to select funds in BlackRock’s Institutional Cash Series.
According to Cointelegraph, each token will represent a share in an underlying money market fund and is designed to move between approved digital wallets 24 hours a day. JPMorgan will provide the tokenization infrastructure, while it will also continue to act as the transfer agent for the funds.
Cointelegraph adds that BlackRock said it has seen demand from digital wallet providers, corporate treasurers, and capital markets participants looking for more efficient collateral, and pointed to peer-to-peer transfer capabilities for companies considering intracompany payments.
Cointelegraph also notes BlackRock previously entered the tokenized cash management market with BUIDL, its US dollar-denominated institutional liquidity fund, which has grown to $2.67 billion in assets, according to RWA.xyz.