BlackRock To Convert $150 Billion Treasury Fund Shares to Tokens on Ethereum

BlackRock, the largest asset manager globally, has taken a step into the world of blockchain by filing with the U.S. Securities and Exchange Commission (SEC) to introduce a blockchain-based version of its Treasury Trust fund, which holds an impressive $150 billion in assets.

This new type of shares, known as “DLT Shares,” will utilize the Ethereum blockchain to digitally record ownership details. This move is significant as it signifies a pivotal moment in merging traditional financial practices with decentralized blockchain technology.

The introduction of DLT Shares is a groundbreaking initiative aimed at enhancing transparency and efficiency in managing fund ownership. By moving away from conventional record-keeping systems, these shares will be recorded on the Ethereum blockchain. This transition will provide a more secure and accessible means of tracking transactions.

While the investment fund itself will continue to focus on traditional U.S. Treasury investments, the mechanism for monitoring ownership is undergoing a digital transformation.

The filing specifies that DLT Shares will be exclusively available through BNY Mellon, one of the largest custody banks worldwide. BNY Mellon will oversee the technical aspects of integrating the blockchain, such as recording and updating digital share ownership details. This strategic partnership will ensure a seamless transition to the new system.

BlackRock’s decision to leverage blockchain technology reflects a growing trend in the financial industry towards embracing decentralized systems. By digitally recording ownership details on the Ethereum blockchain, BlackRock aims to streamline its operations and enhance security measures.

As the adoption of blockchain technology continues to gain traction across various sectors, BlackRock’s move to introduce DLT Shares underscores the company’s commitment to innovation and efficiency. This initiative marks a significant milestone in the evolution of traditional finance into the realm of blockchain technology.

With DLT Shares set to revolutionize the management of fund ownership, BlackRock is poised to lead the way in integrating blockchain solutions into the financial services industry. This forward-thinking approach is indicative of BlackRock’s proactive stance towards embracing emerging technologies for the benefit of its clients and stakeholders.