Asset management company BlackRock has filed to create digital shares through blockchain technology that will track a money market fund.
The DLT—or Distributed Ledger Technology— shares will track BlackRock’s BLF Treasury Trust Fund. For now, these shares may only be purchased from BlackRock Advisors and The Bank of New York Mellon, according to a Form N1-A filing made with the Securities and Exchange Commission. DLT shares won’t be tokenized like the BUIDL token. Instead, it is to be used as a transparency tool for verifying ownership.
BlackRock’s BLF Treasury Trust Fund invests 100% of its total assets in cash, U.S. treasury bills, notes, and other instruments issued by the U.S. Treasury. Investors in this fund will pay a fee of 0.17%, as part of Annual Fund Operating Expenses. Buyers of DLT shares may also pay extra fees depending on the industry professional they deal with. For institutions, the minimum investment amount to buy DLT shares is $3 million.
BlackRock’s latest move is part of a wider pattern among financial institutions to tokenize funds and integrate existing payment technologies with Blockchain.
BlackRock is an American asset-management company created in 1988 by 8 partners. The company manages the iShares fund and is considered to be one of the big three index fund managers globally. Larry Fink is currently the Chairman and CEO.