BlackRock, the world’s largest asset manager, is continuing to embrace blockchain technology in its traditional finance operations. In a recent filing with the US Securities and Exchange Commission (SEC), the firm has sought approval to introduce a blockchain-enabled share class known as “DLT Shares,” connected to its $150 billion money market fund.
The Bank of New York Mellon (BNY Mellon) will oversee the sale of these shares and maintain a mirrored record of ownership using blockchain technology. The minimum investment for this new share class is $3 million, and the fund will focus on short-term investments in US Treasury securities.
While the filing did not specify the blockchain network that BNY Mellon will use, the bank has previously utilized Ethereum for similar initiatives. This move by BlackRock highlights the company’s growing interest in blockchain technology, following the success of its Bitcoin and Ethereum exchange-traded funds (ETFs) and BUIDL fund.
BlackRock CEO Larry Fink has outlined a vision where all assets, including stocks and real estate, are digitized and transacted via blockchain. He believes that tokenization can remove barriers and provide more people access to potentially higher returns on investments.
In addition to ETFs, BlackRock is actively working on asset tokenization through its blockchain-native BUIDL fund, which currently manages over $2.5 billion in tokenized assets. The fund has expanded its operations to various blockchain networks, including Solana, Avalanche, and Ethereum layer-2 networks like Optimism.
Overall, BlackRock’s foray into blockchain technology signals a significant shift in the financial industry towards digital assets and decentralized finance. With its innovative approach and strategic partnerships, BlackRock is poised to lead the way in the adoption of blockchain technology within traditional finance operations.