BlackRock's Nikhil Sharma pitches tokenized money market funds as instant collateral at TOKEN2049

BlackRock is advancing the utility of tokenized money market funds (tMMFs) by enabling them to be posted directly as collateral, eliminating the need for traditional redemption and multi-day cash settlement cycles. Nikhil Sharma, BlackRock’s Director of Digital Assets, emphasizes that this shift allows capital to remain productive while securing trades, significantly improving institutional margin management. On August 3, 2026, the firm launched two new funds, BSTBL and BRSRV, which are specifically designed to target eligibility as reserve assets under the U.S. GENIUS Act. These products build upon the success of the BUIDL fund, which currently manages approximately $2.5 billion in assets. BlackRock is also leveraging J.P. Morgan’s Kinexys platform to facilitate 24/7 peer-to-peer transfers for these tokenized assets. By providing a yield-bearing, regulated alternative to idle stablecoins, these funds aim to become a standard collateral choice for exchanges and lenders. While the initiative represents a major step toward on-chain financial efficiency, widespread adoption remains contingent on the willingness of clearinghouses and counterparties to accept these tokens as collateral.