In what is a massive development for the sector, a BlackRock ETF has purchased its first Muni bond issued through blockchain. Indeed, the leading asset manager has purchased municipal debt issued this year through one of its exchange-traded funds, according to a Bloomberg report.
The move is revolutionary, as the deal completely relies on blockchain technology. Specifically, the bonds were purchased through the $11.5 trillion asset manager iShares Short Maturity Municipal Bond Active ETF, better known as MEAR. According to the report, the fund was founded more than 10 years ago and holds $750 million in assets.
JUST IN: BlackRock ETF buys first muni bonds issued through blockchain.
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BlackRock Completes Revolutionary Bond Purchase Through Blockchain
With 2025 fast approaching, there is little argument that this has been one of the most important years in the history of digital assets. Since November, Bitcoin has been surging in value, surpassing six figures for the first time in its history. Moreover, the asset class has seen institutional interest in an unprecedented way.
One of the most important players in that ongoing ascension has been BlackRock. Indeed, the $11.5 trillion asset manager was one of the inaugural issuers of the Spot Bitcoin ETFs. It has proved to be a massive success, already surpassing the firm’s Gold ETF. Now, they have continued their trend-setting ways, with a BlackRock ETF buying the first muni bond issued through blockchain.
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According to Bloomberg, the move is a “first of its kind deal,” relying exclusively on the technology. The security was issued through Quincy, Massachusetts, in April. Additionally, JPMorgan, the issuer of the dect, used an application on a price blockchain-based network. The network facilitated the sale and represents the first transaction that was completely issued on blockchain.
“The use of blockchain throughout the lifecycle of bonds is just one example of the potential for this technology to transform capital markets,” BlackRock head of municipal bond group, Pay Haskell, told the publication. “This transaction marks a significant moment for the municipal bond market and is a testament to BlackRock’s dedication to innovation.”
