Quick take:
- The global asset manager is issuing new digital shares for its $150 billion Treasury Trust fund.
- BNY Mellon is the fund’s exclusive distributor, according to an SEC filing, which is subject to approval.
- Institutional buyers of the digital ledger technology (DLT) shares will be required to invest at least $3 million, with no limit on subsequent purchases.
BlackRock is introducing a new class of shares for its $150 billion tokenised Treasury Trust fund. The company is using BNY Mellon to issue digital ledger technology (DLT) shares that will not hold cryptocurrency but will use blockchain technology to reflect share ownership records.
BNY Mellon is the Fund’s exclusive distributor of the fund, according to an SEC filing, which is subject to approval. Institutional buyers of the DLT shares will be required to invest at least $3 million, with no limit on subsequent purchases.
This type of share ownership record management demonstrates the multiple use cases in blockchain technology can be integrated into traditional finance through tokenisation.
BlackRock has been one the leading early adopters of crypto from traditional finance. The company’s tokenised USD Institutional Digital Liquidity Fund (BUIDL) issued in partnership with Securitize has grown to become the biggest tokenised money market fund with over $2.5 billion, following its expansion to Solana, according to Dune.
The global investment and asset management company was also among the first companies to launch a Spot Bitcoin ETF, approved in January 2024. The BlackRock iShares Bitcoin Trust ETF now boasts a market cap of $142.7 billion.
Last week, BlackRock-backed tokenisation platform Securitize launched a new crypto index fund with $400 million backing from Mantle.
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