- BlackRock adds blockchain recordkeeping to $150B fund without using crypto.
- Institutional-only DLT shares offer blockchain benefits without on-chain risk.
- SEC nod hints at tokenization’s future in regulated, legacy financial systems.
BlackRock is launching a blockchain-based share class for its $150 billion Treasury Trust Fund, marking a pivotal expansion of its tokenization strategy. These shares won’t hold crypto but will leverage blockchain to record ownership, enabling faster settlements and improved audit trails. As the firm put it, ‘Tokenized RWAs aren’t the future, they’re happening now.
The asset management giant is working with BNY Mellon to introduce these DLT (distributed ledger technology) Shares, leveraging blockchain solely for backend record-keeping. The strategy preserves traditional fund operations while embracing blockchain’s immutability and transparency for institutional reporting. According to regulatory documentation, BlackRock is positioning Ethereum as the likely underlying chain.
The fund remains anchored in traditional short-term U.S. Treasury instruments, seeking capital stability and liquidity while maintaining a $1 NAV. Blockchain integration focuses on ownership tracking only, leaving fund management, custody, and trading within existing rails. Broader adoption signals a pivotal transformation underway for institutional finance.
DLT Shares Target Institutional Capital, Skip Public Blockchain Access
As detailed in the filing, BlackRock’s new digital share class offers exposure to U.S. Treasuries while tracking ownership records on-chain through BNY Mellon. Assets remain off-chain, with BNY Mellon contracting a third-party blockchain platform for recordkeeping. The minimum investment threshold is set at $3 million, and no crypto custody or trading is involved.
Retail access is currently excluded, with the fund reserved for U.S.-based institutions via BNY Mellon and affiliates. All purchases, redemptions, and transfers are processed through the centralized backend, not public blockchain networks. This new alignment alters the competitive landscape for asset managers exploring tokenization.
While the digital ledger won’t directly handle transactions or asset custody, its use improves security, transparency, and operational efficiency. The shares are not available on public exchanges and cannot be self-custodied by investors. Evolving frameworks are reshaping operational models, allowing blockchain to serve behind the scenes without regulatory friction.
BlackRock Reinforces Tokenization Push Amid Global Macro Concerns
CEO Larry Fink has reiterated that tokenization is a structural shift in capital markets, not a passing trend. In his 2025 letter to shareholders, he warned that if the U.S. fails to manage its debt, it may forfeit its financial dominance to decentralized assets like Bitcoin. Current shifts in investor sentiment highlight a new narrative emerging in institutional circles.
BlackRock’s BUIDL fund, launched with Securitize, has already surpassed $1.7 billion and recently expanded onto Solana, showing cross-chain ambitions. The new Treasury DLT Shares further entrench the firm’s long-term tokenization roadmap. This latest move echoes mounting institutional demand for secure, blockchain-enhanced financial instruments without exposing investors to crypto volatility.
The SEC has accepted the submission without additional crypto scrutiny, signaling greenlight status for blockchain-backed recordkeeping under current laws. BlackRock has clearly defined its liability boundaries, shielding itself from losses tied to blockchain failures or cyberattacks. Subtle policy adjustments are impacting market stability and setting the tone for future regulatory clarity.
