BlackRock Adds Tokenised Share Classes to European UCITS MMFs
RWA Signal Insight
U.S. TreasuriesBlackRock has expanded its digital asset strategy by launching twelve tokenized share classes across six of its existing UCITS-regulated money market funds. These share classes, available in EUR, GBP, and USD, utilize the Ethereum blockchain to provide 24/7 peer-to-peer transferability and real-time settlement visibility. The initiative leverages Kinexys by J.P. Morgan as the tokenization layer, which acts as a bridge between on-chain activity and the fund's traditional transfer agent infrastructure. By utilizing established UCITS structures, BlackRock aims to lower adoption barriers for institutional investors while maintaining regulatory continuity. This move represents the most significant institutional tokenized fund launch in Europe to date, targeting use cases such as corporate treasury optimization and digital collateral management. The integration of these funds into tokenized ecosystems addresses inefficiencies in traditional T+1 settlement cycles. Ultimately, the success of this deployment will depend on the speed at which custodians and treasury platforms integrate with the Kinexys infrastructure.
Key points
- BlackRock launched 12 tokenized share classes across 6 UCITS money market funds on Ethereum.
- Kinexys by J.P. Morgan provides the tokenization layer for minting, burning, and registry translation.
- The offering supports EUR, GBP, and USD, targeting corporate treasury and digital collateral use cases.
- Tokens are not separate securities, maintaining regulatory alignment with existing UCITS fund structures.
Background
UCITS (Undertakings for the Collective Investment in Transferable Securities) is a regulatory framework that creates a harmonized regime for the management and sale of mutual funds in the European Union. Money Market Funds (MMFs) are low-risk investment vehicles that invest in short-term, high-quality debt instruments to provide liquidity and capital preservation. By tokenizing these funds, institutions can maintain the safety of traditional MMFs while gaining the operational efficiency of blockchain-based settlement.