Asset manager BlackRock will provide tokenised stakes in some money market funds (MMFs) in Europe.

Cointelegraph reported on Aug. 5 that BlackRock plans to launch tokenised MMF stakes denominated in pounds, euros and U.S. dollars through JPMorgan's blockchain platform Kinexys.

Bloomberg reported that the tokenised assets are part of BlackRock's Institutional Cash Series, a range of institutional cash management products, including pound-, euro- and U.S. dollar-denominated share classes. Total assets under management for the series are about $311 billion, but that figure is for the overall fund range and differs from the assets to be tokenised.

Each token represents one underlying MMF unit. It can be transferred 24 hours a day between approved digital wallets. Kinexys provides the tokenisation infrastructure, and JPMorgan will continue to act as the fund's transfer agent.

BlackRock sees corporate cash managers in traditional finance, as well as digital asset market participants, as key sources of demand. Becky Millcham (베키 밀첨), BlackRock's global head of cash distribution and head of international cash management, said demand for efficient collateral has been confirmed among digital wallet providers, corporate treasurers and capital market participants.

It is also targeting demand for fund transfers between companies. Hannah Winter (해나 윈터), BlackRock's head of digital cash, said a structure that allows transfers between wallets is being received as attractive by companies reviewing payments and settlements between affiliates. That could make tokenised MMFs usable for corporate cash management, payments and settlements, and collateral management.

The launch extends BlackRock's tokenised cash management strategy. BlackRock entered the tokenised cash management market in 2024 by launching the U.S. dollar-based institutional liquidity fund BUIDL. RWA.xyz, a real-world asset (RWA) data firm, said BUIDL's assets under management have since grown to $2.67 billion.

BlackRock has also separately introduced tokenised MMFs aimed at managing reserve assets for stablecoins. It appears to be expanding its business by widening its early product range, which was centred on the U.S. dollar, into Europe’s currency area and by linking tokenised funds to demand for corporate finance and collateral management. JPMorgan is also strengthening its tokenised asset infrastructure business by enabling the issuance and transfer of traditional financial products on a blockchain through Kinexys.

The key feature of the product is enabling 24-hour transfers of MMF stakes on a blockchain. BlackRock is continuing its tokenised cash management experiment by expanding the scope from existing dollar products to include pound and euro share classes.