BlackRock to Tokenize European Money Funds via JPMorgan

BlackRock announced Tuesday it will offer tokenized versions of select European money market funds using JPMorgan’s Kinexys blockchain infrastructure. The tokens will represent fund shares and can be moved at any time between approved digital wallets.

The offering will include pound sterling, euro and US dollar share classes from BlackRock’s Institutional Cash Series, a group of funds that collectively manage about $311 billion. BlackRock did not disclose how much of those assets will be tokenized.

Each token will correspond to a share in an underlying money market fund, keeping the funds’ existing legal and regulatory structure. JPMorgan’s Kinexys platform will handle the tokenization and JPMorgan will continue to serve as transfer agent for the funds.

BlackRock said transfers will be limited to approved counterparties and approved wallets rather than being available on public blockchains. The firm described the tokens as digital representations of fund shares rather than stablecoins or separate cryptoassets, and said traditional fund administration and regulatory responsibilities remain in place.

BlackRock launched a US dollar institutional liquidity token product called BUIDL in 2024; that fund has since grown to roughly $2.67 billion in assets.

Beccy Milchem, BlackRock’s global head of cash distribution and head of international cash management, said the firm “has seen interest from digital wallet providers, corporate treasurers and capital markets participants seeking more efficient collateral.” Hannah Winter, BlackRock’s head of digital cash, added that “the ability to make peer-to-peer transfers had appealed to companies exploring intracompany payments.”

BlackRock did not provide eligibility criteria for approved wallets or a timetable for the launch.