BlackRock Expands Ethereum Tokenization Strategy With Treasury Fund Filing

• BlackRock expands Ethereum tokenization strategy through its $7B Treasury liquidity fund.
• It uses Ethereum ERC-20 tokens for fund shares, while BNY Mellon maintains the on-chain register.
• BlackRock’s filings included a Treasury-backed stablecoin reserve liquidity product.

BlackRock expanded its Ethereum-based tokenization strategy after outlining plans for new blockchain-linked share classes tied to its Treasury liquidity products. The project connects traditional money-market funds with Ethereum infrastructure through tokenized ownership records, increasing institutional activity tied to blockchain settlement systems and tokenized financial products.

The SEC filing centers on BlackRock’s Select Treasury Based Liquidity Fund, which manages about $7 billion in assets. The structure uses ERC-20 tokens on Ethereum to represent ownership of fund shares, while BNY Mellon will maintain the official on-chain ownership register.

The move builds on the growth of BlackRock’s BUIDL fund, which launched in 2024 and currently manages approximately $2.5 billion in assets. BUIDL invests in U.S. Treasury bills, repurchase agreements, and cash instruments while providing tokenized access through blockchain infrastructure.

BlackRock plans to introduce a digital share class connected to its Treasury liquidity fund alongside a separate blockchain-based product tied to stablecoin liquidity and settlement functions. Both products are designed to use Ethereum-based tokenized ownership infrastructure for on-chain transfers and settlement.

The structure links regulated money-market exposure with blockchain settlement infrastructure. The products are intended to allow on-chain transfers while ensuring exposure to short-term U.S. Treasury assets and related cash instruments.

The filing also increases Ethereum’s role in tokenized asset settlement as financial firms continue expanding blockchain-based investment infrastructure. Ethereum remains the settlement layer supporting BlackRock’s tokenized treasury products.

Following this, Larry Fink, BlackRock’s chief executive officer, stated that financial assets could eventually become tokenized. He argued that tokenization may improve settlement efficiency, reduce operational costs, and increase transparency across capital markets.

The filings also included BlackRock’s Daily Reinvestment Stablecoin Reserve Vehicle, a Treasury-backed product designed for stablecoin-related settlement and liquidity management.

The broader tokenized financial market has also continued expanding, with the tokenized real-world assets sector exceeding $31 billion after rising more than 200% over the past year, according to rwa.xyz data. Meanwhile, Boston Consulting Group and Ripple projected that the tokenized asset market could reach $18.9 trillion by 2030 as more financial firms adopt blockchain-based settlement and asset management systems.

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