- BlackRock will tokenise select Institutional Cash Series funds worth $311 billion.
- Tokenised shares will be transferable 24/7 between approved digital wallets.
- JPMorgan’s Kinexys platform will handle tokenisation while acting as transfer agent.
BlackRock is bringing blockchain technology to its flagship money market funds in Europe, the world’s largest asset manager announced on Tuesday, August 4.
The firm will offer tokenised versions of select Institutional Cash Series funds, which together manage $311 billion in assets, according to a Bloomberg report. The move expands institutional blockchain adoption by bringing traditional cash management products onto digital infrastructure.
How the Tokenised Funds Will Work
Each digital token will represent a share in the underlying money market fund, allowing investors to transfer holdings around the clock directly between approved digital wallets, BlackRock said.
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The tokenized funds will include sterling, euro, and US-dollar-denominated share classes, with tokens transferable 24/7 between approved digital wallets.
The tokenization infrastructure will be provided through JPMorgan’s Kinexys blockchain platform, while JPMorgan will continue serving as transfer agent for the funds.
Beccy Milchem, BlackRock’s global head of cash distribution, said interest has come from retail distributors offering digital wallets, corporate treasurers exploring tokenised cash, and capital markets participants seeking more efficient collateral.
Hannah Winter, BlackRock’s head of digital cash, said the initiative aims to modernise market infrastructure, with peer-to-peer transfers appealing to corporates managing intra-company payments.
BlackRock Expands Tokenization Push Across Traditional Finance
BlackRock has been one of the largest traditional asset managers exploring blockchain-based financial products. The company previously launched the BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, which has grown to approximately $2.7 billion since its 2024 debut, according to rwa.xyz data.
Money market funds have become a major focus area for tokenization because they combine blockchain-based transfer capabilities with traditional assets that generate yield. Unlike stablecoins, tokenized money market funds represent regulated investment products backed by underlying securities such as Treasury bills and commercial paper.
Institutional interest in tokenized assets has increased as banks, asset managers, and financial infrastructure providers explore blockchain applications for settlement, collateral management, and cash operations.
Why This Matters
The world’s largest asset manager expanding tokenised money market funds signals growing institutional confidence in blockchain-based finance. It could accelerate broader adoption of real-world asset tokenisation across traditional and crypto markets alike.
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