BlackRock Partners with BNY Mellon to Offer Tokenized Products! Pushes Adoption for Web3

As the financial world steadily embraces blockchain innovation, two giants—BlackRock and BNY Mellon—are making a significant leap toward the future of finance. 

In a groundbreaking move, BlackRock has filed to tokenize shares of its $150 billion Treasury Trust Fund, with BNY Mellon set to serve as the exclusive distributor of these blockchain-powered assets.

This step not only signals a pivotal moment in Web3 adoption by traditional finance (TradFi) but also highlights a potential shift in how investors interact with traditionally rigid financial instruments.

Introduction to Tokenized Finance: BlackRock’s Big Bet

On April 29, 2025, BlackRock submitted a prospectus with the U.S. Securities and Exchange Commission (SEC) to launch Distributed Ledger Technology (DLT) shares—digital shares of its Treasury Trust Fund tracked via blockchain infrastructure. 

The shares will be distributed exclusively through BNY Mellon, one of the oldest and most respected banking institutions in the world.

While the fund itself will not invest in crypto assets, BNY Mellon intends to leverage blockchain technology to maintain a mirror record of digital share ownership. 

This move underscores a broader trend: traditional finance is not replacing, but rather integrating blockchain capabilities to enhance transparency, efficiency, and security.

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What Are DLT Shares?

DLT shares, or Distributed Ledger Technology shares, represent traditional financial assets—such as money market fund shares—recorded and managed using a blockchain or similar decentralized ledger. 

These shares retain all the regulatory and operational structures of their traditional counterparts but introduce:

• Instant settlement
  
   
• Fractional ownership
  
   
• Improved traceability and compliance
  
   
• Reduced back-office friction

In the case of BlackRock’s offering, institutional investors can purchase DLT shares with a minimum initial investment of $3 million, while future contributions have no floor.

This hybrid structure bridges the traditional finance (TradFi) world with the emerging Web3 and decentralized finance (DeFi) ecosystems, potentially opening the door for future public and retail-facing offerings.

Why Partner with BNY Mellon?

BNY Mellon is a logical choice for this initiative, given its progressive stance toward digital assets. 

As one of the first global custodians to offer crypto services and blockchain-based infrastructure, the bank has the technology and credibility to support large-scale tokenization projects.

By acting as the exclusive conduit for these digital shares, BNY Mellon will:

• Maintain on-chain records of ownership
  
   
• Provide custodial infrastructure
  
   
• Ensure regulatory compliance and investor protections

Together, BlackRock and BNY Mellon represent a fusion of trusted financial legacy and next-gen innovation—positioning themselves as key players in shaping the tokenized economy.

Tokenization: A Vision from Larry Fink

BlackRock CEO Larry Fink has long touted the transformative power of tokenization. In his annual letter to investors in March, Fink emphasized that tokenization will “revolutionize investing” by:

• Eliminating settlement delays
  
   
• Allowing 24/7 market access
  
   
• Unlocking billions of dollars tied up in settlement processes
  
   
• Enabling fractional investing and digital voting rights

He argues that this evolution will not only increase liquidity and transparency but also democratize access to investment products—a key theme for Web3.

However, Fink also warned that scalable identity verification remains a challenge for widespread tokenized asset adoption. Once these infrastructure gaps are addressed, tokenized funds could become as ubiquitous as ETFs.

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The Bigger Picture: TradFi Meets Web3

BlackRock’s move is part of a larger trend. Other major institutions like JPMorgan, Franklin Templeton, and State Street have launched or explored tokenized asset products. 

Meanwhile, infrastructure providers like Fireblocks and Calastone are building the rails for tokenization at scale.

Tokenization has already been used to:

• Issue tokenized government bonds
  
   
• Tokenize private credit and real estate
  
   
• Launch on-chain mutual funds

BlackRock’s involvement now lends a powerful endorsement to these efforts, signaling that tokenization is no longer a niche experiment—but a future-ready solution embraced by global financial titans.

Conclusion

The partnership between BlackRock and BNY Mellon is more than a corporate collaboration—it’s a validation of tokenization as a cornerstone of the future financial system. 

By bringing digital ledger technology to one of the largest Treasury funds in the world, BlackRock is sending a clear message: Web3 is not just coming—it’s here.

For investors, regulators, and technologists alike, this move could mark the beginning of a new era where financial products are programmable, interoperable, and universally accessible.

FAQ

What is BlackRock tokenizing?

BlackRock is tokenizing shares of its $150 billion Treasury Trust Fund, creating blockchain-based DLT shares that represent ownership in the fund.

Who will distribute the tokenized shares?

The DLT shares will be available exclusively through BNY Mellon, which will maintain a mirror ledger of ownership using blockchain technology.

What are DLT shares?

DLT shares are traditional financial assets like fund shares that are recorded on a blockchain ledger. They offer benefits such as faster settlement, enhanced transparency, and potential for fractional ownership.

Can retail investors buy these tokenized shares?

Currently, only institutional investors with a minimum initial investment of $3 million can purchase the DLT shares. However, future offerings may open access to retail markets.