BlackRock Files to Launch Digital Share Class for $150B Fund Using Blockchain

BlackRock, the world’s largest asset manager, has filed with the U.S. Securities and Exchange Commission (SEC) to introduce a new blockchain-based digital share class for its $150 billion Liquidity Funds Treasury Trust Fund. The move signals a growing shift among traditional financial institutions toward leveraging blockchain technology to improve operational efficiency and transparency.

The proposed “DLT Shares”—short for distributed ledger technology shares—are designed to modernize how share ownership records are maintained. Rather than relying solely on conventional methods of recordkeeping, these shares will utilize blockchain infrastructure to offer enhanced transparency, streamlined operations, and real-time verification of ownership. While the shares will operate on blockchain rails, they are not tokenized and will not involve cryptocurrencies in any capacity.

This initiative is not about creating a new digital asset, but about using blockchain as a back-end system to make ownership and distribution more efficient and accessible, particularly for institutional clients. The digital share class is poised to deliver benefits such as reduced settlement times, minimized operational risk, and improved auditability.

BNY Mellon tapped for distribution and blockchain recordkeeping

As part of the SEC filing, BlackRock has named BNY Mellon as the exclusive distributor and recordkeeper for the new digital share class. BNY Mellon will manage the blockchain-based infrastructure that records investor ownership, ensuring transparency and accuracy in real-time. This represents a major step in integrating blockchain into core fund services, giving institutional clients a modernized experience that aligns with emerging digital finance standards.

The DLT Shares will be targeted at institutional investors, with a significant initial investment threshold of $3 million. The SEC filing is still in a preliminary phase, and regulatory approval is pending. No ticker symbol, fee structure, or launch date has been disclosed at this time.

This filing echoes the broader ambitions of BlackRock CEO Larry Fink, who has frequently emphasized the potential for tokenization and blockchain technology to revolutionize capital markets. Fink believes tokenization can lead to greater efficiency, fewer intermediaries, and enhanced transparency across global financial systems—provided identity and compliance frameworks are robustly implemented.

Industry-wide blockchain adoption gains momentum

BlackRock’s digital share initiative adds momentum to a broader industry trend where legacy asset managers are embracing blockchain solutions. Fidelity, Franklin Templeton, and other major players have already begun experimenting with blockchain for fund management and custody.

If approved, BlackRock’s digital share class would mark one of the most substantial blockchain implementations in traditional finance to date, paving the way for further innovation in fund structures and investor services. The asset management industry may be on the cusp of a technological transformation driven by blockchain’s promise of greater speed, security, and efficiency.