BlackRock Launches Blockchain-Based Digital Share Class for $150.1B Fund

BlackRock, the world's largest asset manager, has filed with the U.S. Securities and Exchange Commission (SEC) to introduce a digital share class for its $150 billion money market fund. This innovative move leverages blockchain technology to create a new class of shares that will mirror ownership records on a distributed ledger. The digital share class, called DLT Shares, will be exclusively sold through BNY Mellon, which will utilize blockchain technology to track and manage these shares. This development marks a significant step forward in the integration of blockchain technology within traditional financial services, potentially enhancing transparency, security, and efficiency in fund management.

The introduction of a digital share class by BlackRock is a strategic response to the growing interest in digital assets and blockchain technology. By adopting this technology, BlackRock aims to provide investors with a more secure and transparent way to track their investments. The use of blockchain technology ensures that ownership records are immutable and easily verifiable, reducing the risk of fraud and errors. This move also aligns with the broader trend of financial institutions exploring the potential of blockchain to streamline operations and improve customer experiences.

The decision to partner with BNY Mellon for the distribution of these digital shares underscores the importance of collaboration in driving innovation within the financial sector. BNY Mellon's expertise in blockchain technology and its established infrastructure make it a suitable partner for BlackRock in this endeavor. The collaboration is expected to facilitate a smooth transition to the new digital share class, ensuring that investors can seamlessly access and manage their investments.

The launch of this digital share class is not only a testament to BlackRock's commitment to innovation but also a reflection of the evolving landscape of financial services. As more institutions embrace digital technologies, the traditional boundaries between conventional finance and digital assets are becoming increasingly blurred. This development by BlackRock is likely to encourage other asset managers to explore similar initiatives, further accelerating the adoption of blockchain technology in the financial industry.

BlackRock’s recent move matches CEO Larry Fink’s recent remarks on how tokenization could change investing. In a recent letter to investors, Fink explained that tokenization could speed up transactions, remove delays, and quickly reinvest money back into the economy to help it grow. Fink also said that the main challenge with tokenized assets is the lack of proper identity checks. Once that is fixed, he thinks that the tokenized funds could become as familiar as ETFs. Other big companies like JP Morgan, State Street, and Franklin Templeton are also exploring blockchain for tokenized funds.

The Treasury Trust Fund aims to keep a significant portion of its assets in highly liquid investments, such as cash and short-term government securities, to maintain a stable $1 per share value. This system may be a test or early step toward using blockchain for digital currencies or cash transactions in the future. The fund avoids illiquid securities and will not invest in hard-to-sell assets if that would make up more than 5% of its total value. This helps keep the fund easy to cash out for investors. As of April 29, 2025, BlackRock’s Treasury Trust Fund, part of the BlackRock Liquidity Funds, held around $150.1 billion in assets.