BlackRock's Director of Digital Assets Nikhil Sharma said tokenized money market fund shares can be posted as collateral without redemption or waiting days for cash settlement. Sharma will present this at TOKEN2049 Singapore 2026, Oct. 7-8 at Marina Bay Sands.
Traditionally, institutions redeem money market fund shares for cash before posting that cash as collateral. Redemption and settlement take several days, leaving capital idle.
Tokenized tMMFs eliminate this friction. Fund shares exist as on-chain tokens—the position transfers directly to a counterparty without converting to cash. The original holder continues earning yield. The counterparty holds a digital asset it can move or use immediately.
BlackRock's strategy enables tMMF positions to move directly on-chain as collateral, bypassing cash settlement waits. For institutions managing margin across multiple venues, this keeps capital productive even while securing trades.
J.P. Morgan's Kinexys platform supports the infrastructure, providing 24/7 peer-to-peer transfer for tokenized fund shares. Tokens are issued on public blockchains and accessed through approved digital wallets and automated workflows.
In Aug. 2026, BlackRock launched BSTBL and BRSRV—two new tokenized funds designed for eligibility as reserve assets under the U.S. GENIUS Act, the federal framework for stablecoins. BRSRV targets stablecoin reserves and digital-native institutions.
This builds on BUIDL, BlackRock's existing tokenized fund launched in March 2024, which now manages approximately $2.5 billion in assets. Sharma took the Director of Digital Assets role in Dec. 2025.
BlackRock has also tokenized share classes for European UCITS money market funds managing $311 billion in assets as of June 30, 2026. Near-real-time settlement outside traditional market hours creates new liquidity.
For crypto markets, this is material: exchanges, lenders and derivatives venues gain a yield-bearing, regulated collateral alternative to holding idle stablecoins. Fidelity and Invesco are pursuing similar tokenization.
BSTBL and BRSRV's reserve asset status under GENIUS remains a target, not finalized. Redemptions transfer tokens to a designated on-chain wallet address.
