BlackRock Plans to Launch Tokenized Money Market Fund on Ethereum
BlackRock is preparing to launch a tokenized money market fund on the Ethereum network.
This initiative includes digital share classes related to the existing BUIDL fund, as well as newly created products like the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle.
Institutional investors will gain access to USD yields, instant settlement, and 24/7 transfer capabilities via the Ethereum blockchain. BlackRock aims to reduce traditional fund friction and expand on-chain liquidity with partners like Securitize, while traditional asset managers benefit in the RWA space, and some DeFi protocols face compliance competition.
Source: Public Information
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BlackRock launched its first tokenized fund on Ethereum, BUIDL (BlackRock USD Institutional Digital Liquidity Fund), in March 2024, tokenized by Securitize and custodied by BNY Mellon, with assets exceeding several billion dollars to date. This plan aims to further expand into more money market products.
In terms of capital pathways, BlackRock will bring traditional money market fund assets like cash, short-term government bonds, and repurchase agreements on-chain, achieving seamless integration with DeFi and stablecoin ecosystems through tokenization, attracting institutional funds into on-chain yield products while leveraging its existing trillions in AUM to rapidly scale on-chain asset management shares.
Similar to Franklin Templeton's BENJI fund and JPMorgan's recently launched on-chain money market fund, BlackRock is currently in the mid-stage of expanding from the pilot BUIDL to a large-scale RWA product line, accelerating the integration of Wall Street with Ethereum infrastructure.
Structural judgment: This essentially represents a reconstruction of the industrial chain. By tokenizing traditional money market funds on Ethereum, BlackRock shifts the issuance, settlement, and transfer processes from centralized custody to on-chain smart contracts. The mechanism is that after regulatory clarity, capital seeks immediacy, transparency, and programmability, pushing liquidity and yield pricing power from the traditional banking system to blockchain infrastructure.
ABAB News · Cognitive Law
When traditional giants do not enter the market, on-chain is just an experiment; after the giants come in, the rules become a moat.
Tokenization is not about adding blockchain, but selling old assets for new settlement speeds.
Whoever first moves trillion-dollar cash flows on-chain will lock in the pricing power of the next generation of financial infrastructure.