In a groundbreaking development for the financial and blockchain industries, BlackRock has made history by purchasing its first municipal bond issued entirely through blockchain technology.
JUST IN: BlackRock ETF buys first muni bonds issued through blockchain.
— Watcher.Guru (@WatcherGuru) December 18, 2024
According to the report, the leading asset manager executed the transaction via its iShares Short Maturity Municipal Bond Active ETF (MEAR), a fund that manages $750 million in assets and has been in operation for over a decade.
The purchase shows a transformative moment for blockchain adoption in traditional finance. The municipal bond, issued in April by Quincy, Massachusetts, was structured and facilitated entirely through a blockchain-based network, with JPMorgan playing a pivotal role in the transaction process.
BlackRock’s involvement reflects the firm’s commitment to innovation. Pay Haskell, Head of BlackRock’s Municipal Bond Group, emphasized the importance of the transaction, stating “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 multiple bond market and is a testament to BlackRock’s dedication to innovation.”
BlackRock Shines In the Crypto ETF Race
U.S. crypto ETFs saw activity on Tuesday, with spot Bitcoin ETFs attracting $493.95 million in inflows and Ethereum ETFs securing $144.74 million. Among spot Bitcoin funds, BlackRock’s IBIT led the charge with an impressive $741.41 million.
Grayscale’s Bitcoin Mini Trust also performed well, gaining $3.78 million, while Vaneck’s HODL fund added $3.01 million. However, these gains were partially offset by losses from other players, including Grayscale, Fidelity, Ark Invest, and Bitwise.
Fidelity faced the steepest decline, with its FBTC fund dropping $128.17 million. Grayscale’s GBTC followed with a loss of $84.71 million, while Bitwise’s BITB fell by $24.36.
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