Following the approval of guidelines by a major Commodity Futures Trading Commission (CFTC) group, BlackRock and Franklin Templeton may see tokenized shares of their money-market funds used as collateral in trading, according to a Bloomberg report on Thursday. A subcommittee under the CFTC's Global Markets Advisory Committee has voted to forward the recommendations to the full committee, which is anticipated to vote on them later this year, as stated in the report, citing individuals familiar with the matter. Although the specifics of the recommendations were not disclosed, the fact that they have been submitted to the full committee can be viewed as a significant step forward.
The CFTC has not provided an immediate response to a request for comment. An example of the rapidly growing use case for tokenizing traditional investments, such as bonds and funds, on the blockchain is BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). Launched in March, the BUIDL fund became the largest tokenized Treasury fund in just six weeks and surpassed $500 million in market value by July.
Notably, the CFTC's Global Markets Advisory Committee comprises prominent members, including BlackRock and Bloomberg LP, the parent company of Bloomberg News. Further information can be found in the article: Tokenized Treasury Funds Surpass $2 Billion Market Capitalization Amidst BlackRock's Remarkable Growth