Asset management giant BlackRock has filed with the SEC seeking approval to tokenize share classes of its $7 billion Select Treasury-Based Liquidity Fund on the Ethereum blockchain. The move would use ERC-20 tokens to create an official on-chain ownership ledger, with BNY Mellon serving as the on-chain registrar. This initiative aims to provide 24/7 access to Treasury yields through decentralized finance while addressing compliance and operational challenges like securities regulations and gas costs.
BlackRock has filed a major submission with the Securities and Exchange Commission (SEC) to launch tokenized share classes of its $7 billion Select Treasury-Based Liquidity Fund on Ethereum. The filing specifies that the official ownership ledger will be maintained on the Ethereum platform using ERC-20 tokens.
This step transforms fund shares invested in short-term U.S. Treasuries into digital tokens, allowing stablecoin holders and DeFi users to access regulated yield-bearing products. BNY Mellon will act as the custodian, directly handling the real share register on-chain to maintain traditional custody standards.
Choosing Ethereum indicates institutional trust in public blockchain networks as a modern means of securities settlement. The on-chain ownership record enhances transparency and composability for integration with wallets and protocols.
The move follows BlackRock‘s existing BUIDL initiative, which has seen assets under management grow past $2 billion. It sets Ethereum as a settlement layer for institutional capital and echoes a broader trend of digital asset tokenization.
The initiative unlocks potential for on-chain liquidity and programmable collateral within DeFi. However, it must align with securities regulations, KYC/AML protocols, and transfer agent requirements.
Network capacity, gas costs, and privacy remain significant challenges for wide adoption. BNY Mellon‘s role as on-chain registrar addresses compliance, though industry standards are still being formulated.
