BlackRock ETF buys first municipal bonds issued with blockchain technology

• BlackRock’s ETF has reportedly purchased municipal bonds via blockchain for the first time.
• BlackRock’s interest in blockchain technology has been evident since the early launch of its first token fund on the Ethereum blockchain.

BlackRock ETFs It is making a historic acquisition of the first-ever municipal bonds issued via blockchain. According to the report, the bonds purchased from Franklin Township in Ohio were designed using the open source platform Provenance Blockchain.

Speaking about this, Franklin Township Treasurer, Amy Parker, revealed that this initiative underscores the power of blockchain technology to improve efficiency and transparency. In addition, the use of technology has eliminated intermediaries and reduced issuance costs while improving transaction speed.

This deal demonstrates the transformative potential of blockchain technology in improving efficiency and transparency in bond issuance.

Larry Fink, CEO of BlackRock, also praised the development by highlighting how blockchain integration into municipal bonds improves efficiency and security in the financial system.

according to ReportsThese bonds will be used to finance major infrastructure projects in the town, including roads. At the same time, this initiative aligns with BlackRock’s broader vision, which is focused on digital finance and innovation. Its integration into blockchain is also said to represent a proactive approach to bridging the gap between emerging technologies and traditional finance.

BlackRock’s municipal bond conversion and previous involvement in Blockchain

In September, BlackRock announced it was converting a municipal bond mutual fund into an ETF. According to reports, this decision was in response to the growing trend for issuers to capitalize on the growing demand for ETFs. At the time, it was reported that the $1.7 billion BlackRock High Yield Municipal Fund would be used for this purpose while the $195.84 million BlackRock High Yield Muni Income Bond ETF was revamped into an iShares-branded product.

According to CFRA Head of ETF Data and Analytics Aniket Ullal, 85 funds with $139 billion in assets have so far converted to ETFs.

To further delve into BlackRock’s deep interest in blockchain, we discovered that the asset manager announced its first tokenized fund on Ethereum blockchain In the first quarter of the year. Just like the recent acquisition of municipal bonds on the blockchain, this is a reported significant step to integrate traditional financial assets with blockchain technology. According to an expert named Hannah Pham, interest in blockchain technology is based on the following:

• Transparency and native clients for crypto.
• Multi-chain compatibility.
• It is not permissible.

BlackRock’s decision to launch BUIDL on the Ethereum blockchain to meet the needs of cryptocurrency native clients. Investors holding BUIDL tokens can use them to manage treasury, build derivative products, and act as collateral on exchanges. Through a public blockchain, anyone can see BUIDL tokens, which can serve as underlying assets, reserves or collateral, on the chain and live 24/7.

Meanwhile, its latest initiatives put assets under management (AUM) at $11 trillion. Fink believes the momentum will continue through the end of the year and into 2025.

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