Tokenized market capitalization surpasses $30 billion! BlackRock applies for two tokenized fund products, accelerating the push into on-chain finance

BlackRock has submitted applications to the U.S. Securities and Exchange Commission, launching two blockchain-based U.S. Treasury and money market funds. The funds issue on-chain shares through a permissioned system, maintained by a digital asset platform responsible for record-keeping.

The world’s largest asset management firm, BlackRock (NYSE: BK), is actively accelerating its expansion into the “tokenized finance” realm. Recently, it officially filed applications with the U.S. SEC to launch two blockchain-based U.S. Treasury and money market funds.

According to documents submitted to the SEC last Friday, BlackRock plans to introduce a new fund called the “BlackRock Daily Reinvestment Stablecoin Reserve Tool,” primarily investing in cash, short-term U.S. Treasuries, and overnight repurchase agreements backed by government bonds.

This new fund will issue “on-chain shares” via a permissioned system connecting multiple blockchains. The transfer agent division of digital asset securities platform Securitize will be responsible for maintaining official ownership records of these tokenized shares.

The documents indicate that the organization will adopt a permissioned framework on public blockchains, synchronizing the records of investors’ real identities with digital wallet addresses.

Currently, the filing does not disclose which blockchain networks the fund will initially support, but it clearly sets a participation threshold: a minimum investment of $8B, indicating its strategic focus on large institutions and high-net-worth clients.

Another $7 billion money market fund to go on-chain

Meanwhile, BlackRock is also applying to add an on-chain share class to its other traditional money market fund — the “BlackRock Selected Government Liquidity Fund,” which manages nearly $7 billion in assets.

According to the plan, the fund’s transfer agent, BNY Mellon Investment Servicing, will use the Ethereum ERC-20 token standard to register official ownership. The on-chain records will be linked with wallet addresses and an off-chain real-name system for investors, forming the official shareholder registry.

This series of actions highlights BlackRock’s strong ambition to fully enter the tokenized finance space. “Tokenization” refers to converting traditional financial assets like funds, bonds, or stocks into digital certificates on the blockchain, which is currently one of the fastest-growing sectors in digital assets. Advocates believe this technology can significantly shorten settlement times, enable 24/7 trading without market hours, and improve market transparency.

Tokenization market grows over 200% annually, BlackRock CEO supports

How hot is the tokenization wave? According to data tracking platform rwa.xyz, the global “Real-World Asset (RWA)” tokenization market has experienced explosive growth over the past year, with a 200% increase, surpassing a total market value of $30 billion.

Additionally, a joint report by Boston Consulting Group (BCG) and blockchain payments giant Ripple is more optimistic, projecting the RWA tokenization market will soar to $18.9 trillion by 2033.

BlackRock CEO Larry Fink has publicly expressed support for tokenization multiple times, viewing it as the ultimate solution to modernize traditional financial infrastructure.

As early as 2024, BlackRock partnered with Securitize to launch its first tokenized money market fund, “BUIDL,” which has rapidly grown to about $2.5 billion in size. In the cryptocurrency market, it is increasingly used by institutions as collateral for lending and leverage trading.

• This article is reprinted with permission from: “BlockBeats”
• Original title: “Accelerating the Layout of ‘Tokenized Finance’! BlackRock Applies to Launch ‘These 2 On-Chain Funds’”
• Original author: Block Sister MEL