BlackRock Debuts Tokenized Money Market Fund on Solana and Ethereum for Stablecoin Reserves

BlackRock has rolled out a tokenized money market fund aimed at stablecoin reserve management, expanding its onchain product footprint to include Solana, according to CoinDesk. The fund's shares are issued and recorded on Solana, Ethereum and Tempo. BlackRock said the portfolio is invested exclusively in cash, short-term U.S. Treasuries and overnight repurchase agreements backed by U.S. Treasuries, with no exposure to cryptocurrencies. The product is positioned for institutional use, offering what the firm described as high-quality reserve-asset options for stablecoins and other tokenized financial products. BlackRock added that as stablecoin-related demand grows, cash-like instruments remain a core building block for corporate, investor and financial-institution portfolios. The fund will operate under Rule 2a-7 of the Investment Company Act of 1940. Its prospectus states it will not invest in digital assets or virtual currencies. Transfers of tokenized shares can occur onchain but are tightly controlled. The fund uses a whitelist model: wallet addresses must complete identity verification before they can hold or transfer shares. The transfer agent can restrict transfers and, in defined situations, freeze, revoke or reissue tokenized shares. The minimum initial investment is set at $3 million, underscoring the institutional focus. Key details: - Share registration chains: Solana, Ethereum, Tempo - Underlying assets: cash, short-term U.S. Treasuries, overnight repos collateralized by U.S. Treasuries - Minimum initial investment: $3 million BlackRock said the structure is intended to satisfy requirements for qualified reserve assets under the U.S. GENIUS Act, legislation that sets a regulatory framework for U.S. payment stablecoins and has accelerated product development around reserve management. Fund documents also caution that future regulatory changes could affect whether a stablecoin issuer may continue to treat the fund as an eligible reserve asset. Operational risks are also highlighted, including the potential for blockchain outages or smart-contract vulnerabilities to disrupt share trading and transfers. The launch extends BlackRock's broader tokenization push. The firm introduced its BUIDL tokenized money market fund in March 2024, and assets under management have since surpassed $2.6 billion. As U.S. stablecoin rules come into sharper focus, competition is intensifying among reserve-management products. Morgan Stanley and Fidelity have also introduced related offerings targeting stablecoin issuers and institutional capital.