Blackrock plans to introduce tokenized money-market funds on Ethereum platform
May 9, 2026
Cryptocurrency giant Blackrock is making a bold move by venturing into the world of tokenized money-market funds on the Ethereum network. This move is intended to provide stablecoin holders with a regulated, yield-bearing option instead of leaving their money stagnant in digital dollars.
The asset manager has taken steps to tokenize its $6.1 billion Blackrock Select Treasury Based Liquidity Fund (BSTBL) by filing paperwork with U.S. regulators in a bid to introduce a digital share class attached to this fund. This particular fund focuses on investments in cash, U.S. Treasury bills, notes, and other short-term securities with maturities of less than 93 days. The proposed tokenized shares would be traded alongside the existing traditional share classes of the fund on the Ethereum platform.
The primary target audience for these tokenized money-market funds are stablecoin investors, who constitute a rapidly growing segment within the crypto space. These investors often find themselves holding substantial amounts of digital dollars that generate minimal to no yield. By offering a regulated money-market instrument in a blockchain-native format, Blackrock is aiming to tap into the considerable liquidity currently held inactive in stablecoin wallets across the Ethereum network.
Blackrock’s previous foray into tokenization, the BUIDL fund, now boasting over $2.50 billion in assets under management spread across eight different blockchain networks, including Ethereum, BNB, Solana, Polygon, Avalanche, Arbitrum, Optimism, and Aptos, has paved the way for this new undertaking. Tokenized U.S. treasuries have also witnessed significant growth, with the total market size approaching $14 billion, thanks to institutions like Blackrock and Circle spearheading the on-chain adoption of fixed income solutions.
By introducing the tokenized version of the BSTBL fund, Blackrock is expanding its on-chain presence into the short-duration, cash-equivalent sector of institutional finance. The firm is specifically looking to attract investors who typically keep their capital in stablecoins rather than traditional bank accounts, a demographic that has grown in parallel with the expanding stablecoin market, which is now valued at over $320 billion globally.
This strategic move aligns with the broader trend of institutional interest in blockchain-native infrastructure, demonstrated by Blackrock’s recent collaboration with Standard Chartered to bolster OKX’s tokenized treasury collateral system. This partnership allows tokenized real-world assets to serve as active margin and collateral in live trading environments, a model that the BSTBL tokenization would extend to a significantly larger pool of capital.
While Blackrock has yet to confirm a launch date for this new product, it is currently in the regulatory registration phase awaiting approval from the SEC before tokenized shares can be made available to investors.
