BlackRock Brings Tokenized Money Market Funds to European Institutional Investors

BlackRock has expanded its tokenization strategy into Europe by introducing blockchain-based share classes for selected institutional money market funds. The new share classes, which use Ethereum as their underlying technology, allow approved institutional investors to transfer ownership of fund shares digitally around the clock through smart contracts.

The expansion marks BlackRock's first foray into tokenized fund access in Europe and covers 12 share classes across six BlackRock liquidity fund groups. These include Euro Government Liquidity, Sterling Government Liquidity, US Treasury, Euro Liquidity, Sterling Liquidity, and US Dollar Liquidity funds.

According to the asset manager, the new share classes will be available across 15 jurisdictions in Europe, including the UK, Germany, France, Ireland, Luxembourg, Spain, Sweden, the Netherlands, and Singapore. BlackRock has identified potential uses for tokenized fund ownership beyond investment management, including corporate treasury operations, digital collateral management, bank distribution channels, and broader tokenized financial ecosystems.

The introduction of blockchain-based share classes is part of BlackRock's broader digital asset strategy, which aims to provide institutional investors with greater flexibility and convenience when managing their investments. The move also underscores the growing importance of digital infrastructure in the financial services industry.