BlackRock Files SEC Application for Blockchain-Based Fund Class
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- BlackRock seeks SEC approval for blockchain implementation in fund management.
- Potential increase in blockchain financial adoption.
- Ethereum gains interest for institutional asset tokenization.
BlackRock has submitted an application to the U.S. Securities and Exchange Commission to create a blockchain-based share class for its BLF Treasury Trust Fund. Distributed Ledger Technology (DLT) aims to record stock ownership using blockchain.
This represents a shift towards blockchain for operational enhancements, emphasizing efficiency without exposing investors to direct crypto assets.
Institutional Reactions and Potential Impact on Ethereum
BlackRock's application to the SEC introduces a blockchain-based share class called DLT for its Treasury Trust Fund. The fund will utilize blockchain technology to efficiently record and manage stock ownership. BlackRock has partnered with Bank of New York Mellon for the distribution and record-keeping of these shares.
This integration aims to streamline management operations and support institutional adoption of blockchain without direct cryptocurrency involvement. The initiative targets existing fund operations, involving high-quality, short-term U.S. Treasury securities.
Although there are no direct quotes, Larry Fink, CEO of BlackRock, has expressed an interest in exploring blockchain and digital asset technologies in traditional finance. This aligns with BlackRock's pioneering role in Bitcoin ETFs and tokenization pilots.
Market Data and Future Insights
Did you know? BlackRock has been a key player in the financial industry, often leading innovations in investment strategies.
CoinMarketCap data shows Ethereum (ETH) at $1,839.03, with a market cap of $222.03 billion and a 7.37% dominance. Volume over 24 hours hit $15.67 billion, up 4.21%. Recent price changes include a 1.49% rise over a day and a 44.29% drop over 90 days, updated as of May 2, 2025.
The Coincu research team highlights that BlackRock's blockchain use may increase interest in Ethereum for institutional assets. Despite no immediate tokenization, future developments could lead to asset tokenization on Ethereum, boosting network value and utility.
Read original article on coincu.com