BlackRock has launched tokenized access to institutional money market funds in Europe, covering $311 billion in assets. The rollout includes 12 tokenized share classes across its Institutional Cash Series (ICS) money market funds. According to BlackRock, the initiative brings tokenized access to existing institutional cash funds across multiple European and international markets.
The company has partnered with Kinexys by JPMorgan to provide the tokenization platform, which links blockchain activity with the existing fund register. Each on-chain token represents ownership of an underlying ICS fund share. Approved institutional investors will be able to transfer tokenized shares directly between eligible wallets at any time through smart contracts.
Tokenization Efforts
BlackRock's tokenization efforts extend beyond the U.S., where the firm introduced two blockchain-based money market products earlier this week. The European launch expands the same strategy into existing institutional liquidity products. The on-chain share classes will initially be available in 13 countries, including Bermuda, Estonia, and the United Kingdom.
Institutional Uses
The tokenized share classes are intended for institutional uses, including corporate treasury operations, digital collateral management, and integration with tokenized financial systems. Hannah Winter, Head of Digital Cash at BlackRock, said tokenized money market funds allow the firm to deliver high-quality short-duration investment exposure in digital form without changing its standards for capital preservation, liquidity, and risk management.