BlackRock will introduce tokenized versions of select European money market funds, leveraging JPMorgan’s blockchain infrastructure, according to a Bloomberg report. The initiative, part of BlackRock’s Institutional Cash Series—which oversees $311 billion in assets—will allow round-the-clock transfers between approved digital wallets. JPMorgan’s Kinexys division will provide the tokenization technology, with the bank also acting as transfer agent for the funds.
The tokenized shares will represent portions of BlackRock’s cash management offerings, enabling seamless movement of assets through digital wallets. BlackRock’s BUIDL fund, launched in 2024, reportedly holds $2.67 billion in assets, as per data from RWA.xyz. The move is expected to attract interest from digital wallet providers, corporate treasurers, and capital markets participants, according to BlackRock’s global head of cash distribution, Beccy Milchem.
BlackRock has highlighted the appeal of peer-to-peer transfers for intracompany payments, with Hannah Winter, head of digital cash at the firm, noting the potential to streamline financial operations. However, the exact portion of the $311 billion Institutional Cash Series that will be tokenized remains unspecified. The extent of adoption by external stakeholders is described as “observed” rather than confirmed, with no official figures provided.
The collaboration with JPMorgan underscores the growing integration of blockchain technology in traditional finance, particularly in asset management. While the initiative is framed as a step toward greater efficiency in collateral management, its long-term impact on market liquidity and regulatory frameworks remains to be seen.
Written by Oliver Grant
Markets Desk
