BlackRock to Launch Tokenized Money-Market Fund in Europe With 24/7 Wallet Transfers
Summary
- BlackRock said it will launch a blockchain-based tokenized money-market fund (MMF) in Europe.
- The product will offer part of the firm's existing institutional liquidity fund in the form of tokens denominated in pounds, euros and US dollars.
- Approved investors will be able to make direct 24-hour transfers between digital wallets, and the product could serve as a complement to stablecoins for companies and institutions.
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BlackRock, the world's largest asset manager, is launching a blockchain-based tokenized money-market fund in Europe.
The firm plans to offer tokenized interests in part of its existing $311 billion institutional liquidity fund, Bloomberg reported on August 4. The product will include share classes denominated in pounds, euros and US dollars.
Each token will carry the same value as one share in the underlying money-market fund. Approved investors will be able to transfer the tokens directly between digital wallets 24 hours a day.
JPMorgan's blockchain platform Kinexys will be used for the product. The bank will also manage investor information and fund-share transfers.
Money-market funds invest in relatively low-risk assets such as short-term government bonds and commercial paper, seeking yield while maintaining a stable value. BlackRock said the product could serve as a complement to stablecoins for companies and institutions seeking to hold cash-like assets on blockchain networks.
"It is still early, but we already have clients reviewing related products," Beccy Milchem, BlackRock's head of international cash management, said. She added that use cases will continue to expand over the next few years.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.