Major financial institutions accelerate real-world asset tokenization amid regulatory advancements, with BlackRock’s BUIDL fund surpassing $500M and JPMorgan processing $300B in blockchain-collateralized transactions this year.
BlackRock’s BUIDL became the largest tokenized treasury fund on 24 June 2024, while JPMorgan expanded its blockchain collateral network to include Barclays – critical moves as EU’s DLT pilot regime went live last week.
Institutional Momentum Builds for Tokenized Treasuries
BlackRock’s BUIDL fund reached $500 million in assets under management on 24 June 2024, leveraging Securitize’s blockchain platform for daily NAV updates. This milestone coincided with JPMorgan expanding its Tokenized Collateral Network (TCN) to include BlackRock and Barclays, enabling instant settlement of $300 billion in collateral year-to-date. ‘We’re seeing unprecedented demand for programmable treasury products,’ said BlackRock CEO Larry Fink during the 25 June earnings call.
Regulatory Blueprint Emerges from EU’s DLT Pilot
The European Union activated its distributed ledger technology (DLT) pilot regime on 26 June 2024, permitting €1 billion in tokenized bonds and stocks to trade on blockchain platforms under relaxed MiCA rules. EU Financial Services Commissioner Mairead McGuinness stated: ‘This creates a controlled environment to test systemic impacts while protecting investors.’ The move pressures US regulators to clarify digital asset custody rules, particularly after the SEC’s 2023 security designation for certain tokenized products.
Custody Models Evolve to Bridge DeFi and TradFi
Apollo Global Management and Figure Technologies launched a $1 billion blockchain-based private credit fund on 27 June 2024, featuring automated compliance checks for investor accreditation. JPMorgan’s TCN now accepts Bitcoin ETFs as collateral, blending traditional finance with digital asset liquidity. Visa’s 28 June expansion of its USDC settlement pilot to Latin American merchants demonstrates growing corporate use cases for tokenized cash flows.
These developments build on the infrastructure established during China’s 2010s mobile payment revolution, where platforms like Alipay processed $17 trillion in 2020 alone. However, today’s tokenization wave differs fundamentally by targeting institutional rather than retail users – BCG estimates 97% of asset managers now have dedicated blockchain working groups, up from 42% in 2021. The shift mirrors the 2017-2021 cryptocurrency boom but focuses on cash-flow-generating assets rather than speculative tokens, with custody solutions evolving to meet stringent corporate treasury requirements.
