BlackRock Buys Blockchain-Powered Muni Bond ETF: Details
The post BlackRock Buys Blockchain-Powered Muni Bond ETF: Details appeared on BitcoinEthereumNews.com.
BlackRock Inc. has taken its blockchain engagements further by purchasing municipal debt issued earlier this year. This municipal debt is settled using blockchain technology, setting up BlackRock as a pacesetter. About the BlackRock Muni ETF Purchase The bond purchase was markedly conducted through an actively managed exchange-traded fund called the iShares Short Maturity Municipal Bond Active ETF or MEAR. The President of ETF Store, Nate Geraci, recognizes BlackRock’s move as baby steps toward a fully tokenized future. In April, the securities were first issued by Quincy, Massachusetts. The sale was facilitated through an application on JPMorgan Chase & Co.’s private, permissioned blockchain-based platform. BlackRock purchased its first muni debt settled & held on blockchain… Was done via JPM’s Digital Debt Service, a private & permissioned blockchain platform. Bonds held via iShares Short Maturity Muni Bond Active ETF. Baby steps towards a fully tokenized future. via @EKHudson pic.twitter.com/xyayIQinJd — Nate Geraci (@NateGeraci) December 18, 2024 One of the holdings included in the ETF is worth a total of $6.5 million in the Quincy deal. Speaking about the deal, Pat Haskell, head of the municipal bond group at BlackRock, stated that, “The use of blockchain throughout the lifecycle of bonds is just one example of the potential for this technology to transform capital markets. This transaction marks a significant moment for the municipal bond market and is a testament to BlackRock’s dedication to innovation.” – Advertisement – A filing dated December 27 submitted to the United States Securities and Exchange Commission (SEC) acknowledged that the prospectus for MEAR was recently updated. These changes helped allow the fund to invest in muni bonds settled on JPMorgan’s application Digital Debt Service. A major disclaimer was issued to inform them of the risks involved, including lack of liquidity and potential errors. The potential for bugs…