BlackRock Files for Digital Shares in $150 Million Money Market Fund to Use Blockchain Tech
The post BlackRock Files for Digital Shares in $150 Million Money Market Fund to Use Blockchain Tech appeared on BitcoinEthereumNews.com.
Key Takeaways: BlackRock is seeking approval to create digital shares for its money market fund that would use blockchain technology to track them. The digital shares will mirror ownership records but will not be tokenized, serving as a tool for transparency. Institutions have to commit to a minimum purchase of $3 million in digital shares. BlackRock Advances Toward Blockchain for Money Market Fund Shares BlackRock has filed to issue digital shares for one of its well-known money market funds. These shares are anticipated to reflect the performance of the BlackRock Liquidity Funds Treasury Trust Fund (TTTXX). They will employ blockchain to provide an additional level of transparency regarding the ownership of the shares. The news, in an SEC filing published today, could signal a significant shift from traditional asset management models regarding the use of blockchain in financial services. The shares themselves won’t be tokenized, but blockchain will be employed to mirror ownership records in the interest of verification, giving investors a transparent way to verify ownership. How BlackRock Works to Use Blockchain in Its Digital Shares The digital shares will be backed by BlackRock’s Treasury Fund, primarily investing in U.S. Treasury bills and cash, worth over $150 million. The Bank of New York Mellon (BNY Mellon) will use blockchain technology to maintain a “mirror record” of share ownership. The blockchain will maintain an updated ledger of share ownership for verification purposes, but it won’t function as the primary, legally binding ownership record. Institutional Investment Requirements for BlackRock’s DLT Shares The barrier to entry for institutional investors seeking to purchase these digital shares is enormous. The DLT shares can only be acquired with a minimum of $3m and the trades will only be done on transactions that pass through BNY Mellon. The exclusivity underscores the product’s strategic, large-scale focus, targeting…
