BlackRock, one of the world’s largest asset management firms, has recently chosen the Ethereum blockchain for its latest innovation: two tokenized money market funds. This decision emphasizes BlackRock’s commitment to increasing its presence in the cryptocurrency sector, specifically targeting stablecoin holders.
BlackRock’s Selection of Ethereum for New Funds
As reported by Bloomberg, BlackRock is preparing to launch two tokenized money market funds under a filing with the U.S. Securities and Exchange Commission (SEC). The first of these funds, which will feature tokenized shares of the BlackRock Select Treasury-Based Liquidity Fund (BSTBL), will be hosted on the Ethereum network. The second fund, named the BlackRock Daily Reinvestment Stablecoin Reserve Vehicle (BRSRV), is set to operate across several blockchain platforms, although it remains unclear if the XRP Ledger will be included in this array.
The BSTBL fund presents an attractive option for organizations and individuals issuing stablecoins who wish to enhance their reserve assets. This fund will primarily invest in highly liquid instruments such as cash and U.S. Treasury securities that mature within 93 days. The BRSRV fund also aims to cater to stablecoin issuers, particularly those who prefer self-custodial solutions.
This forthcoming initiative further diversifies BlackRock’s tokenized financial offerings. The firm already has a tokenized U.S. Treasury fund, known as the BUIDL fund, which is actively traded on multiple blockchain networks, with the Ethereum network holding the majority of its circulating supply. However, BlackRock has not yet extended this fund to the XRP Ledger, even though some avenues, like Ripple’s RLUSD, facilitate operations for this fund.
BlackRock’s portfolio also includes exchange-traded funds (ETFs) focused on Bitcoin and Ethereum. However, it has created speculation regarding a potential XRP ETF, with Bloomberg analyst James Seyffart suggesting that a filing for such an ETF is not imminent. Seyffart posits that BlackRock might instead pursue an active crypto index fund that could potentially comprise various cryptocurrencies, including XRP.
XRP Ledger’s Ongoing Development
In contrast, the XRP Ledger continues to demonstrate remarkable growth regarding tokenized assets. According to data from RWA.xyz, the total value of Real-World Assets (RWA) on the XRP Network has surged nearly 47% over the past month, reaching a total of $3.5 billion. Meanwhile, during the same timeframe, Ethereum has seen a slight decline of 4%, bringing its total RWA value to $16.8 billion.
Moreover, trading volumes for tokenized assets on the XRP Ledger have seen a significant uptick. The trading volume for tokenized U.S. Treasuries has jumped to over $352 million this year, a fivefold increase compared to last year’s volume of $70 million. Recent collaboration between Ondo Finance and Ripple has also marked a milestone by completing the first cross-border settlement of tokenized U.S. Treasuries through Ondo’s tokenized OUSG fund operating on the XRP Ledger.
As of the current update, XRP’s market price is hovering around $1.46, showing a small increase over the past 24 hours, according to CoinMarketCap.
