BlackRock has rolled out blockchain-linked share classes for selected funds within its $311 billion Institutional Cash Series (ICS) in Europe, using the Ethereum network to represent ownership of money market fund interests. The launch is the asset manager’s European debut for a tokenized investment fund and reflects its effort to bring blockchain technology into established investment products.
The blockchain-enabled share classes operate through JPMorgan’s Kinexys platform and reflect ownership in the existing Institutional Cash Series money market funds. The official transfer agent continues to maintain shareholder records, preserving the current legal ownership structure. Under this model, eligible investors can own and transfer their fund holdings through blockchain while remaining within the established legal framework.
BlackRock is launching 12 blockchain-enabled share classes tied to six Institutional Cash Series liquidity funds. Qualified investors can transfer fund units across supported digital wallets using smart contracts whenever needed, helping treasury teams and collateral managers complete transactions more quickly and efficiently.
BlackRock Expands Blockchain-Based Fund Offerings Globally
BlackRock designed blockchain-enabled share classes for institutional use, supporting functions such as corporate treasury operations, digital collateral, bank distribution, and connections with tokenized financial markets. Initial availability extends across 15 jurisdictions, including the United Kingdom, several European markets such as Germany, France, and Ireland, as well as Luxembourg and Singapore.
According to Hannah Winter, Head of Digital Cash at BlackRock, the new digital access model fits within the firm’s existing fund framework while preserving the same investment features. Winter stated:
“Tokenised money market funds allow us to bring high-quality, short-duration investment exposures into digital formats, while maintaining the same standards around capital preservation, liquidity, and risk management.”
BlackRock has continued to expand its tokenized fund strategy through BUIDL, which has paid more than $100 million in blockchain-based dividend distributions following its launch in March 2024. The fund has grown into a leading blockchain-based money market offering, supporting treasury management and collateral-related activities.
BlackRock Advances Long-Term Asset Tokenization Strategy
Recent activity shows BlackRock continuing its work on blockchain-based financial initiatives in addition to its regulated cryptocurrency operations. In July, BlackRock became part of a Depository Trust & Clearing Corporation pilot that enables financial institutions to evaluate blockchain-based versions of stocks and U.S. Treasuries while the underlying assets continue to remain within the existing market infrastructure.
The pilot also includes JPMorgan, Goldman Sachs, Vanguard, the New York Stock Exchange, and several leading financial institutions. The program focuses on testing tokenized representations of assets without changing existing market systems.
Last month, Martin Small, BlackRock’s Chief Financial Officer, said tokenized funds remain distinct from the company’s broader digital asset plans for cryptocurrency exchange-traded funds. The company’s long-term plans include providing investors with access to tokenized funds through digital wallets, alongside crypto assets and stablecoins.
