BlackRock to Tokenize $150 Billion Money Market Fund Using DLT

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The financial world is witnessing a pivotal shift as traditional finance giants embrace blockchain innovation. At the forefront of this transformation is BlackRock, the world’s largest asset manager, which has filed plans to launch DLT (Distributed Ledger Technology) shares for its massive $150 billion money market fund. Partnering with BNY Mellon, BlackRock is setting the stage for a new era of tokenized assets, signaling deeper institutional integration into Web3 infrastructure.

This move isn’t about launching a cryptocurrency—it’s about reimagining how ownership and settlement work in mainstream finance. By leveraging blockchain as a secure, real-time ledger system, BlackRock aims to enhance efficiency, transparency, and liquidity in one of the most critical corners of global finance.

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BlackRock Introduces DLT Shares Through BNY Mellon

In a recent filing submitted to the U.S. Securities and Exchange Commission (SEC) on April 29, 2025—Form N-1A—BlackRock revealed plans to issue digital DLT shares for its BlackRock Liquidity Funds Treasury Trust Fund. These shares will use distributed ledger technology to record ownership, offering a modern alternative to traditional settlement systems.

Importantly, these DLT shares will only be available through BNY Mellon, one of the world’s leading custodians and transfer agents. Access is currently limited to institutional investors, with an initial investment threshold of $3 million. However, once onboarded, subsequent investments carry no minimum requirement, allowing flexibility for large-scale capital deployment.

While the underlying fund does not invest in cryptocurrencies or utilize blockchain for transaction execution, BNY Mellon will deploy a "mirror ledger" built on blockchain technology. This parallel digital record will sync with existing systems, ensuring accurate, tamper-resistant tracking of share ownership while maintaining regulatory compliance.

This hybrid model reflects a cautious yet forward-thinking approach: integrating cutting-edge technology without disrupting proven financial frameworks.

A $150 Billion Test Case for Asset Tokenization

As of April 29, 2025, the BlackRock Liquidity Funds Treasury Trust Fund manages approximately $150.1 billion in assets, making it one of the largest money market funds globally. Institutions rely heavily on such funds for short-term cash management due to their high liquidity and perceived safety.

Tokenizing a fund of this magnitude represents a significant milestone. It serves as a real-world stress test for digital securities infrastructure, potentially paving the way for broader adoption across bonds, equities, and private markets.

Although the SEC has not yet approved the proposal, the filing indicates that final terms may evolve based on regulatory feedback. Still, the direction is clear: tokenization is moving from concept to execution within mainstream finance.

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Larry Fink’s Vision: A Tokenized Future of Finance

BlackRock CEO Larry Fink has long championed the transformative power of tokenization. In his 2025 annual letter to shareholders, he stated:

“Tokenization will transform investing forever. Markets won’t need to close; trades can settle in seconds. Billions of dollars trapped in settlement delays can be instantly redeployed into the economy, fueling growth.”

Fink envisions a future where:

He also highlights digital shareholder voting and programmable compliance as key benefits, enabling smarter governance and reduced administrative overhead.

According to Fink, tokenization isn’t just a tech upgrade—it’s a path toward financial democratization, lowering barriers and increasing accessibility across asset classes.

Regulatory Hurdles Remain Key Challenges

Despite the optimism, Fink acknowledges that major obstacles remain—particularly around identity verification and regulatory compliance.

“Until we solve identity and ensure full regulatory alignment,” he noted, “tokenized funds won’t reach the same ubiquity as ETFs.”

These concerns underscore why early implementations like BlackRock’s are being rolled out selectively through trusted intermediaries like BNY Mellon. The current model maintains Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols while testing the technological backbone.

True mass adoption will require standardized frameworks for:

Until then, progress will remain incremental—but highly strategic.

Frequently Asked Questions

Q: Is BlackRock launching its own cryptocurrency?
A: No. BlackRock is not creating a crypto token or stablecoin. Instead, it’s using blockchain to digitize shares of an existing money market fund—known as DLT shares—for improved record-keeping and settlement.

Q: Can retail investors buy these DLT shares?
A: Not currently. The offering is restricted to institutional investors with a minimum entry point of $3 million. There are no public plans yet for retail access.

Q: Will this fund invest in Bitcoin or other digital assets?
A: No. The BlackRock Liquidity Funds Treasury Trust Fund invests in traditional short-term U.S. Treasury securities. It does not hold any cryptocurrencies.

Q: What role does BNY Mellon play in this initiative?
A: BNY Mellon acts as the transfer agent and sole distributor of DLT shares. It also operates the blockchain-based mirror ledger that tracks ownership in parallel with conventional systems.

Q: How is this different from an ETF?
A: While both are regulated investment vehicles, this is a money market fund using blockchain for internal recordkeeping—not trading on exchanges like ETFs. The DLT layer enhances operational efficiency but doesn’t change the fund’s structure.

Q: When will the DLT shares be available?
A: The launch depends on SEC approval. As of now, there is no confirmed release date, but industry experts expect a pilot phase by late 2025 or early 2026.

Traditional Finance Embraces Blockchain at Scale

BlackRock is far from alone in exploring tokenization. Major financial institutions are actively experimenting with DLT to modernize capital markets:

Together, these moves signal a broader trend: legacy finance is building its own Web3 rails—not to replace existing systems overnight, but to evolve them securely and sustainably.

The goal? Faster settlements, lower costs, enhanced transparency, and seamless cross-border operations—all powered by permissioned or hybrid blockchain architectures.

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Conclusion: The Dawn of Institutional Tokenization

BlackRock’s move to tokenize a $150 billion money market fund marks more than a technical upgrade—it’s a foundational step toward a fully digitized financial ecosystem. With support from established players like BNY Mellon and growing executive advocacy from leaders like Larry Fink, tokenized assets are transitioning from niche experiments to core financial infrastructure.

While regulatory clarity and identity solutions remain work in progress, each new pilot brings us closer to a future where:

As traditional finance continues integrating blockchain technology, one thing becomes increasingly clear: the future of money is digital, programmable, and on-chain.

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