BlackRock Enters Blockchain-Based MMF Market with JPMorgan Partnership
BlackRock, the world's largest asset manager, is expanding its presence in blockchain-based financial products. The company plans to launch a tokenized money-market fund (MMF) in Europe, using JPMorgan's Kinexys platform for management and transfer of investor information and funds.
The new product will offer share classes denominated in pounds, euros, and US dollars, allowing approved investors to make direct 24-hour transfers between digital wallets. Each token will carry the same value as one share in the underlying MMF, which invests in relatively low-risk assets such as short-term government bonds and commercial paper.
BlackRock sees this product as a complement to stablecoins for companies and institutions seeking to hold cash-like assets on blockchain networks. According to Beccy Milchem, BlackRock's head of international cash management, 'it is still early, but we already have clients reviewing related products.' She added that use cases will continue to expand over the next few years.