BNY Debuts BLIQUID Tokenized MMF
A press release, "BNY Investments Launches Its First Native Blockchain Product, BLIQUID by BNY," states, "BNY Investments Dreyfus, part of BNY (BNY) ... announced the launch of BNY Dreyfus On-Chain Liquidity Fund, one of the first digitally native, SEC-registered 2a-7 money market funds. Shares are represented on-chain by BLIQUID tokens, with each share's ownership and transfers recorded on the blockchain as part of the fund's recordkeeping system." It continues, "The Fund is fueled by BNY's digital asset ecosystem, a global, scalable platform integrating tokenization, distribution, and custody to help power the future of financial markets. Built on BNY's Digital Transfer Agency capability, BLIQUID by BNY connects directly to the firm's underlying transfer agency recordkeeping infrastructure, supporting on-chain ownership records, transfer processing and reconciliation to off-chain." Stephanie Pierce, Deputy Head of BNY Investments, comments, "BLIQUID by BNY gives clients an entirely new way to put cash to work, combining the speed and efficiency of a digitally native structure with the security and reliability our clients count on. This is a meaningful step forward in how we help clients access liquidity in an increasingly digital world and demonstrates how BNY connects traditional finance with next generation market infrastructure." BNY explains, "Unlike earlier tokenized fund structures that relied on 'digital twins' of traditional shareholder records, the fund's shares are issued natively on-chain. Transactions, including mints, burns, transfers and fees, are visible and auditable on-chain, allowing investors to verify holdings and performance, and on-chain infrastructure supports the settlement and distribution of tokenized funds, reducing reliance on certain traditional processing handoffs. Peer-to-peer token transfers are available 24/7 between allow-listed wallets with subscriptions and redemptions supported in both fiat and stablecoin all within the BNY ecosystem." The release adds, "Initially at launch, BLIQUID by BNY will be available on the Ethereum and Solana blockchains, with additional networks expected over time. Eligible investors that have a digital wallet maintained for them by digital custody providers, Anchorage Digital or BitGo Bank & Trust, N.A., or directly by BNY, can invest in the fund. Consistent with the broader BNY Investments Dreyfus liquidity suite, it is anticipated that BNY’s LiquidityDirect platform will support investments in the fund, delivering the same intuitive experience, institutional scale, and rich functionality clients use today, now extended to tokenized money market funds."
