S&P gives BlackRock tokenized reserve fund top stability rating

JPMorgan and BlackRock have teamed up to introduce tokenized money market funds to European markets, as reported by Bloomberg on Tuesday. The partnership will utilize JPMorgan's blockchain platform, Kinexys, to tokenize shares of select BlackRock money market funds denominated in pounds, euros, and US dollars. These tokenized funds will mirror BlackRock's Institutional Cash Series, which manages roughly $311 billion across various currencies.

Each token will represent a share in an underlying money market fund, enabling transfers between digital wallets around the clock. JPMorgan's Kinexys platform will provide the tokenization infrastructure, while BlackRock will serve as the transfer agent for the funds. BlackRock's global head of cash distribution, Beccy Milchem, mentioned that the offering has drawn interest from digital wallet providers, corporate treasurers, and capital markets participants looking for more efficient collateral management.

Hannah Winter, BlackRock's head of digital cash, added that the availability of peer-to-peer transfers has attracted companies seeking streamlined intracompany payments. BlackRock previously ventured into the tokenized cash-management space with its US dollar-denominated Institutional Liquidity Fund, BUIDL, which grew to $2.67 billion in assets by the end of 2024.