Use of BlackRock Tokens as Collateral Moves Closer to Mainstream

Efforts to allow use of tokenized shares of money-market funds from Wall Street behemoths like BlackRock and Franklin Templeton as collateral in trading took a big step forward as a group of financial firms voted to approve guidelines for their use.

A subcommittee of the Commodity Futures Trading Commission’s Global Markets Advisory Committee voted on Tuesday to pass its recommendations on the topic to the full committee, according to two people familiar with the matter. The recommendations relate to how registered firms can use distributed ledger technology for holding and transferring non-cash collateral. A CFTC spokesperson didn’t reply to a ...