Grove unveiled a $1 billion credit facility Wednesday that promises to slash the time it takes to turn money-market fund shares into stablecoins from days to instantaneous. The facility taps into BlackRock's BUIDL tokenized fund and Janus Henderson's money market funds, allowing users to redeem shares and receive stablecoins in real time.
How the instant redemption mechanism works
Traditional redemptions from tokenized funds or money market funds can take one to three business days to settle. Grove's credit facility acts as a liquidity buffer: it pre-funds stablecoin payouts to users, then settles the underlying fund redemption afterward. That cuts the waiting period to zero. The company said the facility is backed by the $1 billion in assets under management across the partner funds.
The role of BlackRock and Janus Henderson
BlackRock's BUIDL fund, launched in 2024, has become a cornerstone of the tokenized treasury market, holding short-term U.S. government securities. Janus Henderson, a traditional asset manager, also contributed its money-market fund holdings to the pool. Grove didn't disclose the exact allocation between the two, but said both funds meet the credit facility's liquidity requirements.
Why settlement speed matters for stablecoin users
Stablecoin holders often move funds between yield-bearing assets and cash-like tokens to react to market shifts or meet margin calls. A multi-day settlement lag can cost traders opportunities or force them to keep excess capital idle. Grove's facility aims to remove that friction, making tokenized money-market funds as liquid as stablecoins themselves. The company expects the service to appeal to institutional investors who want yield without sacrificing instant access.
Grove plans to expand the facility to additional tokenized funds later this year. The company didn't specify a launch date for the expansion but said it's already in talks with other issuers.
