BlackRock Expands Tokenized Funds to Europe via JPMorgan Partnership

BlackRock is set to introduce tokenized versions of selected European money market funds by leveraging the blockchain capabilities of JPMorgan. This initiative marks a significant step in bringing traditional financial products onto digital platforms for greater efficiency and accessibility across i

BlackRock is set to introduce tokenized versions of selected European money market funds by leveraging the blockchain capabilities of JPMorgan. This initiative marks a significant step in bringing traditional financial products onto digital platforms for greater efficiency and accessibility across international markets.

The new offering will encompass share classes denominated in pound sterling, euros, and US dollars drawn from BlackRock’s Institutional Cash Series. These funds together oversee approximately 311 billion dollars in assets under management. It is important to note that this total represents the entire fund family rather than solely the portion undergoing tokenization at this stage.

Under the arrangement each digital token will correspond directly to ownership in the underlying money market fund. Holders will gain the ability to transfer these tokens seamlessly at any time between verified digital wallets operating on a continuous basis without traditional market hour restrictions.

JPMorgan’s Kinexys platform is responsible for supplying the necessary tokenization technology and infrastructure. At the same time the bank will maintain its existing role as the official transfer agent responsible for handling all administrative aspects of the funds including record keeping and settlement processes.

Beccy Milchem who serves as BlackRock’s global head of cash distribution and head of international cash management highlighted growing demand from various participants. These include digital wallet providers corporate treasurers and players in capital markets who are actively looking for improved ways to manage and utilize collateral in their operations.

Hannah Winter BlackRock’s head of digital cash emphasized that the feature allowing direct peer to peer transfers has attracted particular attention. Companies are exploring this capability especially for handling internal payments between different subsidiaries and business units within their organizations.

This development builds upon BlackRock’s earlier entry into the tokenized cash management space through the launch of its BUIDL fund. That US dollar denominated institutional liquidity vehicle debuted on the Ethereum network during 2024 and has since expanded substantially reaching a total of 2.67 billion dollars in assets according to data tracked by RWA.xyz.