BlackRock Boosts Tokenization Efforts with New Funds

BlackRock, one of the world's largest asset managers, is further expanding its presence in the tokenization market. The company plans to launch two new tokenized money market funds that will cater to the growing demand for stablecoin issuers and crypto-native institutions.

The first fund, called the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle, will invest in ultra-short-term US government securities and repo agreements while issuing on-chain shares held through approved crypto wallets. This vehicle is designed to qualify as an eligible reserve asset under the GENIUS Act, a US law establishing a framework for payment stablecoins.

The second fund, BlackRock Select Treasury Based Liquidity Fund, will issue tokenized shares of BlackRock's existing $6.9 billion Treasury liquidity fund on Ethereum. This move is seen as a significant development in the tokenization market, which has grown rapidly in recent years.