BlackRock Tokenizes $311B European Money Market Funds on Ethereum
In brief
- BlackRock tokenized $311B in European money market funds using Ethereum and J.P. Morgan's Kinexys infrastructure.
- Tokens enable 24/7 peer-to-peer transfers and near real-time settlement via smart contracts.
- Offering restricted to professional and qualified investors across 13 jurisdictions.
- BlackRock's BUIDL tokenized fund now manages $2.6B across eight networks since March 2024.
The Structure and Mechanics
The 12 new share classes sit across six funds in the BlackRock Institutional Cash Series, covering euro, sterling and US dollar denominations. Each token represents a share in the underlying fund, with the official shareholder register maintained by the fund's transfer agent.
The innovation lies in the settlement layer. Smart contracts move holdings between approved investor wallets, delivering round-the-clock peer-to-peer transferability and near real-time visibility. This contrasts sharply with traditional money market fund settlement cycles, which typically operate on T+1 or T+2 timelines.
The underlying funds are public debt constant net asset value and low volatility NAV money market funds regulated under Europe's UCITS regime. This regulatory framework ensures the structures comply with existing European investor protections while unlocking blockchain's efficiency gains.
Targeting Institutional Demand
The share classes are marketed to professional and qualified clients rather than retail investors, and are available in 13 jurisdictions including Bermuda, Estonia, France, Germany, Ireland, Lithuania, Luxembourg, Malta, the Netherlands, Singapore, Spain, Sweden and the UK. This geographic reach reflects institutional demand for cash management solutions outside traditional banking channels.
BlackRock identified three primary use cases: corporate treasury management, digital collateral and bank and wealth distribution channels. Each addresses pain points in how institutions currently manage and move cash across borders.
Expanding Tokenization at Scale
This launch builds on BlackRock's existing tokenization efforts. The firm previously issued tokenized money market funds on Solana, Ethereum and Stripe's Tempo with Securitize as transfer agent, aimed at stablecoin reserve management.
More notably, BUIDL, the tokenized fund BlackRock launched on Ethereum in March 2024 with a $5 million minimum, has since expanded across eight networks and now manages more than $2.6 billion. The momentum underscores institutional appetite for tokenized cash products.
"Today's launches represent an important evolution in how investors access and manage cash, while helping modernise capital markets infrastructure" — Beccy Milchem, Global Head of Cash Distribution and Head of the International Cash Management business at BlackRock
The rollout signals that tokenization is moving beyond pilot programs. Institutional adoption of blockchain-based settlement for regulated financial products remains a defining trend in 2025.
Frequently asked questions
What does tokenizing money market funds mean?
Tokenization converts fund shares into digital tokens on a blockchain. Each token represents a share in the underlying fund, with the official shareholder register still maintained by the transfer agent. Smart contracts then enable 24/7 peer-to-peer transfers between approved wallets, replacing traditional T+1 or T+2 settlement cycles.
Why is this launch restricted to professional investors?
BlackRock positioned these tokenized share classes for institutional clients—corporate treasurers, wealth managers, and banks—rather than retail investors. The offering targets specific use cases like treasury management and digital collateral, where institutional demand for efficient settlement is highest.
How does this compare to BlackRock's BUIDL fund?
BUIDL is a tokenized money market fund BlackRock launched on Ethereum in March 2024 with a $5 million minimum. It has since expanded to eight networks and manages over $2.6 billion. The new European offering complements BUIDL by targeting a different investor base (professional institutional) and regulatory regime (UCITS), while using the same blockchain infrastructure.
