BlackRock says its tokenized money-market funds are already being used as collateral in digital-asset markets. In an interview published by Bloomberg, Dan Maley, who oversees the firm’s cash business in Asia Pacific, said extending that use into traditional finance remains more complex. Banks must agree to accept tokenized fund shares as collateral, while settlement infrastructure and legal rules must support the process.
The distinction is operational: tokenization can allow eligible investors to transfer fund ownership without first redeeming the underlying investment for cash. But 24/7 token transfers do not automatically mean 24/7 cash redemptions. BlackRock’s $BUIDL fund has grown to approximately $2.3 billion since launching in 2024.
BlackRock executives described early demand from on-chain investors, including stablecoin holders seeking yield. Wider adoption by traditional institutions is still an objective, not a completed rollout
The distinction is operational: tokenization can allow eligible investors to transfer fund ownership without first redeeming the underlying investment for cash. But 24/7 token transfers do not automatically mean 24/7 cash redemptions. BlackRock’s $BUIDL fund has grown to approximately $2.3 billion since launching in 2024.
BlackRock executives described early demand from on-chain investors, including stablecoin holders seeking yield. Wider adoption by traditional institutions is still an objective, not a completed rollout