Major financial institutions including BlackRock and JPMorgan are accelerating efforts to bring traditional Treasury-backed assets onto blockchain networks. The move comes as tokenized money market funds emerge as a potential reserve solution for stablecoin issuers, signaling deeper integration between Wall Street and digital finance.
BlackRock and JPMorgan Expand Into Tokenized Finance
Blockchain adoption among large financial firms continues to grow following regulatory developments surrounding stablecoins. According to data from Token Terminal, institutions such as BlackRock and JPMorgan are preparing blockchain-based Treasury products designed to serve as reserve assets for stablecoins.
The shift follows progress around the GENIUS Act, legislation that opens the possibility for stablecoin issuers to hold tokenized money market funds as part of their reserves. As a result, competition among traditional financial institutions for exposure to the on-chain Treasury market is increasing.
Tokenized Treasury Market Nears $14 Billion
The tokenized U.S. Treasury sector has expanded rapidly and is now estimated to be worth around $13.9 billion.
Ethereum remains the dominant blockchain in this market, accounting for more than half of all activity. BNB Chain follows with over 20% market share. Ethereum’s leadership position is reinforced by its large stablecoin ecosystem and growing number of tokenized Treasury products.
Both BlackRock and JPMorgan have filed proposals related to blockchain-powered money market products. These offerings include exposure to cash equivalents, repurchase agreements, and short-term U.S. government securities.
Importantly, the products are structured under the Investment Company Act of 1940 and use permissioned blockchain systems, limiting investor access while maintaining regulatory oversight.
BlackRock Plans Blockchain Integration for Treasury Fund
BlackRock’s strategy centers on adding blockchain-based ownership records to an existing liquidity fund valued at roughly $7 billion.
The asset manager is introducing a digital securities share class linked to Treasury-focused liquidity products. Financial services firm BNY will manage transfer agent responsibilities and maintain official ownership infrastructure.
However, investor identity information will remain off-chain, balancing blockchain transparency with privacy and compliance requirements.
Traditional Finance Moves Closer to Public Blockchains
The latest filings from BlackRock and JPMorgan highlight how established financial giants are approaching tokenization differently while pursuing similar goals — improving efficiency, expanding access to regulated products, and leveraging blockchain technology.
As tokenized assets continue gaining momentum, public blockchain networks may increasingly become infrastructure for regulated financial products, bridging traditional finance with the digital asset economy.
