BlackRock is expanding its tokenized asset offerings to Europe, using JPMorgan's Kinexys blockchain platform. The tokenized money market fund shares will be available in pounds, euros, and US dollars.
Tokenized funds on a bank-run blockchain
The move places BlackRock's short-term investment products on a distributed ledger technology platform operated by JPMorgan. Kinexys, formerly known as Onyx, is JPMorgan's blockchain-based system for wholesale payments and tokenized assets. By listing on Kinexys, BlackRock's money market funds can be traded and settled more efficiently, with the potential for 24/7 transactions.
Three currencies, one platform
The tokenized shares will be denominated in three major currencies: the British pound, the euro, and the US dollar. That multi-currency approach could appeal to European corporate treasurers and institutional investors who manage cash across different jurisdictions. Money market funds are typically used for short-term cash management, offering low-risk returns.
BlackRock's digital asset push
This is not BlackRock's first foray into tokenized funds. The asset manager already has a tokenized money market fund in the US, the BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL. That fund launched earlier this year and has attracted significant assets. The European expansion via Kinexys marks a step toward making tokenized funds available to a broader international client base.
JPMorgan's Kinexys network
Kinexys is JPMorgan's in-house blockchain platform that processes billions of dollars in transactions daily. It allows for the tokenization of traditional assets, enabling faster settlement and programmability. By partnering with BlackRock, JPMorgan is positioning Kinexys as a key infrastructure for the growing tokenized asset market.
The launch of tokenized money market funds in Europe could accelerate adoption of blockchain in traditional finance. However, the specific funds, launch date, and regulatory status have not been disclosed. European investors will have to wait for further details from BlackRock and JPMorgan.
