BlackRock Launches Tokenized Money Market Funds for Stablecoin Reserves
Summary
- BlackRock launched two blockchain-based money market funds (MMFs) aimed at institutional cash management and demand for stablecoin reserve management.
- BSTBL and BRSRV are tokenized money market funds available on the Ethereum blockchain and across multiple blockchains, offering transfers between approved investor wallets and automatic reinvestment.
- Both products invest in cash, short-term US Treasuries and ultra-short repurchase agreements, with the goal of preserving the liquidity and principal stability of traditional money market funds.
Forecast Trend Report by Period
BlackRock has launched two blockchain-based money market funds targeting institutional cash management and stablecoin reserve needs.
Crypto media outlet Odaily reported on August 3 that BlackRock rolled out BlackRock Select Treasury Based Liquidity Fund OnChain Shares, or BSTBL, and BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, or BRSRV.
BSTBL issues shares of a traditional money market fund in tokenized form on the Ethereum blockchain. Those shares can be transferred between wallets of approved investors in accordance with applicable regulations. BNY Mellon is responsible for investor recordkeeping and token issuance.
BRSRV is a newly created tokenized money market fund for institutional investors in digital assets. It automatically reinvests daily dividends and can be used across multiple blockchains. The vehicle can also be used by stablecoin issuers to manage reserves. Securitize handles token issuance and investor recordkeeping.
Both products invest in cash, short-term US Treasuries and ultra-short repurchase agreements backed by US Treasuries. BlackRock aims to preserve the liquidity and principal stability of conventional money market funds while using blockchain technology.
Demand for high-quality reserve assets that can support stablecoins and tokenized financial products is increasing, 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 across traditional and digital markets.
The US money market fund market now exceeds $8.4 trillion. BlackRock's cash management group oversees about $1.1 trillion of cash assets for corporations, banks, insurers and public funds.
