Nikhil Sharma, BlackRock’s Director of Digital Assets, proposes using tokenized money market funds as direct collateral. This approach eliminates the need to redeem shares for cash, bypassing the multi-day settlement cycles that currently keep capital idle.
On August 3, 2026, BlackRock launched two tokenized funds, BSTBL and BRSRV, designed to potentially serve as reserve assets under the US GENIUS Act. These products follow the BUIDL fund, which was introduced in March 2024 and currently manages approximately $2.5 billion in assets.
BlackRock has also introduced tokenized share classes for its European UCITS money market funds. As of June 30, 2026, these funds held a total of $311 billion in assets under management.
To facilitate 24/7 peer-to-peer transfers, BlackRock is collaborating with the Kinexys platform by J.P. Morgan. The company aims to enable direct on-chain movement of fund positions without traditional settlement delays.
While firms like Fidelity and Invesco are pursuing similar initiatives, widespread adoption remains dependent on the willingness of exchanges and clearinghouses to accept tokenized shares as collateral.
