BlackRock Files to Launch Blockchain-Based Digital Shares for Treasury Fund
The world’s largest asset manager, BlackRock, with over $10 trillion in assets under management, submitted a filing to the U.S. Securities and Exchange Commission (SEC) on April 29 to introduce a new share class for its BLF Treasury Trust Fund (TTTXX).
These DLT shares are part of a broader strategy to integrate blockchain technology into traditional financial products.
Unlike tokenized assets on public blockchains such as Ethereum or Solana, the asset manager’s DLT shares are not tokenized. Instead, the Bank of New York Mellon (BNY) will operate a permissioned, private blockchain to maintain a mirror record of share ownership. The official record will continue to be kept via the traditional book-entry system.
Also read: BlackRock Boosts Digital Asset Division Amid Crypto ETF Boom
This structure is designed to enhance settlement efficiency, reduce operational risk, streamline record-keeping for institutions, and improve ownership transparency—without replacing the conventional record-keeping framework.
BlackRock Joins Institutional Blockchain Push
BlackRock’s move follows Fidelity’s March 2025 filing for an Ethereum-based OnChain share class of its $80 million Fidelity Treasury Digital Fund (FYHXX), which unlike BlackRock’s DLT shares, will use native tokenization.
Meanwhile, Franklin Templeton has already implemented blockchain-backed fund shares through its Stellar-based Franklin OnChain U.S. Government Money Fund (BENJI), which holds over $700 million in tokenized U.S. Treasuries.
These developments signal growing institutional interest in real-world asset (RWA) tokenization as a mainstream financial tool, rather than a niche innovation.
BlackRock’s digital shares reflect a broader trend toward integrating traditional finance (TradFi) with decentralized finance (DeFi). This hybrid approach enables benefits such as faster settlement, reduced administrative overhead, improved auditability, and potential smart contract integration.
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Similar to tokenized treasuries now traded in permissioned blockchain environments, this initiative could also pave the way for secondary market trading of digital fund shares.
Regulatory Outlook and Market Trends
BlackRock’s application is still under SEC review, as is Fidelity’s OnChain share class. Although U.S. regulators remain cautious toward crypto-native offerings, tokenization efforts backed by traditional financial institutions appear to be receiving more favorable consideration.
The global tokenized U.S. Treasuries market has reached $6.16 billion, with Ethereum dominating at $4.55 billion, followed by BlackRock’s BUIDL fund at $2.55 billion. Stellar and Solana support $474.9 million and $274.5 million in tokenized treasuries, respectively.
Market caps of blockchain-based Treasury products (Source: rwa.xyz)
BlackRock CEO Larry Fink has consistently promoted tokenization as a transformative shift in market infrastructure, with the potential to unlock global investment access and 24/7 trading.
Also read: DeFi Meets TradFi: Tokenized US Treasuries Power a $5B Blockchain Revolution
If approved, BlackRock’s DLT share class could serve as a new model for hybrid financial products, bridging the gap between legacy systems and the blockchain-powered future. Broader adoption could eventually extend to other asset classes like municipal bonds and private credit, with expanded use of automated compliance tools and decentralized custodians.
