Nikhil Sharma, Director of Digital Assets at BlackRock, proposes using tokenized money market fund shares as instantly transferable collateral on a blockchain, eliminating the redemption step and multi-day settlement waits. BlackRock launched two new tokenized funds, BSTBL and BRSRV, on August 3, 2026, targeting eligibility as reserve assets under the US GENIUS Act for stablecoins. These products build on BUIDL, launched in March 2024 with approximately $2.5 billion in assets under management, plus tokenized share classes for European UCITS money market funds totaling $311 billion as of June 30, 2026. For institutions, this tokenization allows capital to remain productive while serving as collateral, potentially reducing liquidity buffer requirements, while crypto platforms gain a regulated, yield-bearing alternative. Adoption nonetheless depends on counterparties, clearinghouses and exchanges agreeing to accept these tokenized fund shares.
Source: Read the original article
