BlackRock, the world’s largest asset manager, has filed with the U.S. Securities and Exchange Commission (SEC) to launch two tokenized money-market funds. The firm aims to use these funds to target investors who hold their cash in stablecoins, with the GENIUS Act providing more legitimacy to these stablecoins.
BlackRock To Launch Two Tokenized Money-Market Funds
According to a Bloomberg report, the world’s largest asset manager has filed with the SEC to launch two money-market funds for stablecoin holders. The firm plans to launch tokenized shares of its BlackRock Select Treasury-Based Liquidity Fund (BSTBL), which is worth around $6.1 billion.
This fund notably invests in cash, U.S. Treasury bills, notes, and other securities with maturity dates of 93 days or less. The asset manager will launch tokenized shares for BSTBL on the top layer-1 network, Ethereum, which will function similarly to traditional shares.
Meanwhile, the second tokenized fund will be the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV), which the asset manager plans to launch, targeting investors who hold their cash in stablecoins and prefer self-custody to using brokerages. This fund will launch on multiple networks, according to the SEC filing.
This move comes as the tokenization trend picks pace, with Wall Street giants moving their products on-chain. As CoinGape reported, fellow crypto ETF issuer Bitwise recently launched its first tokenized fund, which looks to generate yield from the difference between the spot and futures prices of crypto assets.
BlackRock’s move to launch these money-market funds also follows the passage of the GENIUS Act, which has boosted stablecoin adoption. The launch of these funds positions the asset manager to provide compliant reserve assets for their stablecoins.
Fits Into The Bull Case For Ethereum
BlackRock’s move to launch these tokenized money-market funds fits the bull case for Ethereum, which Bitmine’s Chair, Tom Lee, has laid out. He predicts a massive move for the ETH price, driven in part by tokenization. Lee said that ETH could see a 25x rally from its current price.
The Bitmine chairman opined that the market is going through an important moment in the financial system, similar to 1971, when the U.S. went off the gold standard. “Tokenization is making almost every asset synthetic, and it follows a roadmap that happened when the US went off the gold standard in 1971,” he said.
Tom Lee noted that this revolution led to a huge unleashing of innovation and products from money-market funds to currency futures to CDOs to indexed futures, all because the U.S. was trying to protect the dollar’s sovereignty. He opined that this is happening again because the market is digitizing everything.