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BlackRock Actively Embraces “Asset Tokenization”
Advancing the Pace of “Investment Democratization”
The so-called “DLT Digital Shares” refer to digital shares that utilize Distributed Ledger Technology (DLT) to track ownership. According to the N-1A form submitted this Monday, these DLT shares will be issued and distributed solely by Bank of New York Mellon (BNY Mellon). The minimum threshold for institutional investors to purchase DLT shares is set at $3 million, but there is no minimum requirement for subsequent additional investments. The filing states:
“Although the fund is not currently utilizing blockchain technology or investing in crypto assets, … [BNY Mellon] plans to use blockchain technology to establish a mirror record of shareholdings for its clients.”
According to BlackRock’s website, as of April 29, 2025, the total assets of the BlackRock Liquidity Fund – Treasury Trust Fund is approximately $150.1 billion. Currently, the prospectus for this DLT share program is still subject to SEC review and modification, and has not yet been finalized.
Advancing the Pace of “Investment Democratization”
This initiative by BlackRock aligns with CEO Larry Fink’s previous public statements regarding the “tokenization” of assets. In his annual letter to shareholders in March 2025, Larry Fink stated:
“Asset tokenization will fundamentally change the way investments are made. Markets will no longer need to close, trades will no longer take days to complete, but can settle in seconds. Billions of dollars that are frozen due to settlement delays can be immediately reinvested into the market, further driving economic growth.”
Larry Fink emphasized that tokenization can promote investment democratization, as it allows for fractional ownership, enhances digital shareholder voting rights, and opens up income opportunities to a broader range of investors. However, he also noted that the current identity verification mechanisms for tokenized assets are still inadequate, which is a major bottleneck for widespread adoption. Once this issue is resolved, he anticipates that tokenized funds will become familiar tools for investors, similar to ETFs (Exchange-Traded Funds). In addition to BlackRock, other large financial institutions, including JPMorgan, State Street, and Franklin, are also actively embracing blockchain and asset tokenization technologies. These institutions have already initiated fund tokenization or related businesses.