On April 29, BlackRock submitted a filing to the US Securities and Exchange Commission (SEC) proposing the use of blockchain to track ownership of a money market fund.
In a filing, the company outlined its proposal to create a digital version of shares in its BLF Treasury Trust Fund (TTTXX) using distributed ledger technology (DLT).
These digital shares will not be tokenized, but they will serve as a secondary record to show ownership.
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The fund itself holds just over $150 million in assets, made up mostly of US Treasury bills and cash. According to the filing, the new shares would only be available for purchase through BlackRock Advisors and The Bank of New York Mellon (BNY).
BNY will also handle the blockchain side, which keeps a digital copy of share ownership records for its clients.
BlackRock noted that this new system is not replacing the current one. The official ownership record will still be kept through the traditional method, while the blockchain copy will be used for added transparency.
These shares are aimed at institutional investors. To buy in, they will need to make an initial investment of at least $3 million. BlackRock has not yet set a management fee for the new share class or assigned it a ticker symbol.
On April 23, Citigroup released a report on financial rule changes that could support the adoption of blockchain and stablecoins in 2025. What did the report say? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
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