BlackRock Launches Two Tokenized Money Market Funds for Stablecoin Reserves

BlackRock has launched two blockchain-based money market funds aimed at institutional cash management and stablecoin reserve management.

Crypto-focused media outlet Odaily reported on August 3 that BlackRock introduced the BlackRock Select Treasury Based Liquidity Fund OnChain Shares, or BSTBL, and the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, or BRSRV.

BSTBL issues shares of a traditional money market fund as tokens on the Ethereum blockchain. Under applicable regulations, the shares can be transferred between wallets of approved investors. BNY Mellon is responsible for investor recordkeeping and token issuance.

BRSRV is a newly created tokenized money market fund for institutional investors in digital-asset markets. It automatically reinvests daily dividends and can be used across multiple blockchains. Stablecoin issuers can also use the fund to manage reserves. Securitize is handling token issuance and investor recordkeeping.

Both products invest in cash, short-term US Treasuries and ultrashort repurchase agreements backed by US Treasuries. The goal is to use blockchain while preserving the liquidity and principal stability of conventional money market funds.

Demand is rising for high-quality reserve assets that can support stablecoins and tokenized financial products, Jon Steel, BlackRock's global head of product and platform for cash management, said. The new products expand clients' options for using money market funds in traditional financial markets and digital markets, he added.

The US money market fund market has grown to more than $8.4 trillion. BlackRock's cash management group oversees about $1.1 trillion of cash assets for companies, banks, insurers and public funds.