A Landmark Move in Institutional Asset Management

BlackRock, the world’s largest asset manager, filed a request with the U.S. Securities and Exchange Commission (SEC) on April 28, 2025, seeking approval to issue digital shares (DLT Shares) for its flagship money market fund — the BlackRock Treasury Trust, which manages approximately $150 billion in assets.

Leveraging Distributed Ledger Technology

The digital shares will be recorded using Distributed Ledger Technology (DLT) to track ownership. Distribution will be exclusively managed by BNY Mellon, which will act as the transfer agent and maintain the digital share registry. The minimum initial investment for institutional investors will be set at $3 million, with no minimum for subsequent investments.

Importantly, the fund itself will continue to operate traditionally and will not use blockchain for portfolio management. Nor will it include any crypto assets. BNY Mellon will maintain a “mirror record” of holdings via blockchain without altering the underlying structure or investment strategy of the fund.

Larry Fink’s Tokenization Vision

The move aligns with BlackRock CEO Larry Fink’s broader vision of financial tokenization. In his 2025 annual letter to investors, Fink emphasized:

“Every stock, every bond, every fund – every asset – can be tokenized. If that happens, it will transform investing.”

He noted that tokenization has the potential to enable instant settlement, lower transaction costs, and enhanced liquidity across financial markets. Fink also highlighted its role in democratizing access to private market assets, such as infrastructure and real estate, through fractional ownership and digital voting rights.

However, he cautioned that the lack of mature digital identity infrastructure remains a critical barrier to widespread adoption.

A Growing Institutional Trend

BlackRock is not alone in exploring tokenization. Other major financial institutions — including J.P. Morgan, Franklin Templeton, and State Street — are already piloting or rolling out tokenized solutions in various commercial formats. Additionally, U.K.-based Calastone recently announced the integration of Fireblocks infrastructure into its platform, enabling asset managers to tokenize funds at the push of a button.

Conclusion

BlackRock’s initiative to tokenize shares of a traditional money market fund on this scale marks a significant inflection point for blockchain adoption in institutional finance. It signals a willingness by leading players to drive technological change while maintaining a measured balance between innovation and regulatory compliance.