The financial world witnessed a historic event as BlackRock's ETF MEAR made its first purchase of municipal bonds entirely issued and settled on the blockchain.
Quincy Bonds and JPMorgan's Blockchain Tech
Earlier this year, Quincy, Massachusetts, issued bonds using blockchain technology from JPMorgan Chase. The Digital Debt Service platform managed the entire process from issuance to settlement on the blockchain, bypassing traditional methods. BlackRock was the first major player in this deal, as part of its actively managed MEAR, which holds $750 million in client assets.
BlackRock’s ETF Stays Strong
MEAR became the world's first deal involving municipal bonds on blockchain. To allow such investments, BlackRock updated its ETF prospectus, filed with the U.S. Securities and Exchange Commission, warning of potential risks like limited liquidity and possible errors in blockchain applications.
Growth of BlackRock’s Crypto ETFs
Launched earlier this year, BlackRock’s iShares Bitcoin Trust (IBIT) demonstrated impressive results. Over the past day, IBIT attracted $740 million, collecting over $51 billion in assets, making it one of the fastest-growing ETFs in history, outperforming BlackRock's gold ETF that has been around since 2005.
BlackRock continues to actively develop its blockchain-based investment tools. This first step with the purchase of municipal bonds through blockchain demonstrates the progress of innovative solutions in the financial sector.
