What are tokenized money market funds?

tMMFs can support treasury management by providing access to U.S. dollar yield while holding assets on blockchain infrastructure. This enables investors to maintain exposure to high‑quality, short‑term instruments while benefiting from digital delivery.

tMMFs can be used as collateral for trading, enabling the use of high-quality, Treasury‑backed assets in trading and financing activities. This supports more efficient deployment of capital within both traditional and digital markets.

The key difference with these products is the use of tokenization for issuing shares to investors. OnChain Shares are issued in the form of tokens that are minted onto a blockchain and transferred to an investor’s digital wallet, which enables new capabilities for investors.

While traditional money market fund shares are issued to investors in book-entry form onto a traditional transfer agency ledger, OnChain Shares introduce potential flexibility in how investors access and transfer liquidity with faster settlement times.

Additionally, these products will offer benefits like 24/7/365 peer-to-peer transfers and on-chain record ownership which do not exist in our money market funds today.

Investors’ wallet addresses, token balances, and transactions may be visible on-chain. Other PII is kept off-chain and wallet-to-client identity mapping is maintained through the transfer agent. Omnibus/nominee structures may further centralize on-chain visibility to a single wallet where appropriate.

Investor ownership is safeguarded by the fact the transfer agent maintains the shareholder register as another record. If a tokenization component is disrupted, the model is designed so investor servicing can continue based on the traditional TA register, with contingency for prolonged tokenization/network outages treated as part of the operating resilience design.

Public blockchain networks require the payment of certain transaction fees to execute a transaction on the applicable network. These fees are typically paid in the native digital asset for the operation of the blockchain network (such as in the form of “ether,” the native digital asset for the operation of Ethereum). These transaction fees (sometimes called “gas fees”) are paid to execute a transaction.

For transactions relating to purchases of OnChain Shares and dividend distributions, transaction fees will be the responsibility of BlackRock, and shareholders will not be required to purchase any native digital asset to transact on the applicable network. Redemption transactions or peer-to-peer transactions will require the shareholder to pay the gas fees.

Institutional investors seeking to bring cash management on-chain, including treasury teams, financial institutions and participants in digital asset ecosystems looking for a regulated money market fund that combines traditional MMF features with blockchain-enabled capabilities such as 24/7 transferability, operational efficiency and integration into digital workflows.