tl;dr
BlackRock filed with the US SEC to tokenize its $150 billion Treasury Trust money-market fund using a new "DLT Shares" asset class on the Ethereum blockchain, marking the largest real-world asset flow to Ethereum to date. BNY Mellon will maintain a blockchain record of each share. BlackRock has prev...
BlackRock is set to tokenize its $150 billion Treasury Trust money-market fund on the Ethereum blockchain, representing the largest real-world asset flow to Ethereum to date. BNY Mellon will maintain a blockchain mirror of every tokenized share, improving transparency and ownership tracking.
Ethereum solidifies its position as the industry standard for real-world asset tokenization, holding a 56% market dominance with $6.2 billion tokenized on-chain. Despite substantial institutional interest and advancements in tokenization, Ethereum’s price remains depressed, trading near bear market lows around $1,800.
BlackRock CEO Larry Fink emphasizes tokenization’s transformative potential, highlighting instant settlements and unlocked liquidity as key benefits that could revolutionize investing. Reflecting growing institutional confidence, BlackRock’s spot ETH ETF recently purchased $162 million worth of Ether.
BlackRock previously launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) on Ethereum, with 93% of its assets managed on the platform. The Treasury Trust Fund, focused on short-term US Treasury securities for stable returns, will utilize a new "DLT Shares" asset class on Ethereum, tracked by BNY Mellon’s blockchain record.
Industry experts acknowledge that institutions gravitate toward deep liquidity, security, and credibility, with Ethereum serving as a reliable settlement layer. Despite Ethereum’s price struggles—down 63% from its 2021 peak and nearly 50% this year—analysts remain optimistic about its long-term value, seeing current price dips as buying opportunities.
As BlackRock and other major players dive deeper into tokenization, the move marks a critical milestone for blockchain adoption in traditional finance, marrying the speed and transparency of blockchain with the stability of US Treasury assets. This ongoing shift hints at a future where tokenized assets could dominate investment portfolios, offering enhanced efficiency and liquidity.