The GENIUS Act created a new market for tokenized money market funds (MMFs) by allowing stablecoin issuers to hold them as reserves. In the past few days, BlackRock and JP Morgan Asset Management have both filed prospectuses to compete for it. Their approaches reveal notably different levels of readiness for public blockchain infrastructure.
There is some commonality between the two offerings beyond the same objective. Both will hold cash, short term Treasuries and repo, and both are issued on Ethereum under the Investment Company Act of 1940. They all use a permissioned layer to only enable ownership by users on an allow list. However, there are notable differences between the offerings.
In BlackRock’s case, it is launching two offerings. One involves a new onchain class of digital securities relating to an existing fund, the $7 billion BlackRock Select Treasury Based Liquidity Fund. BNY is the transfer agent, and the blockchain represents the official record of ownership, with personal information related to each wallet held off chain.
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