BlackRock Fund Acquires Blockchain-Based Municipal Bonds

According to PANews, BlackRock has made a significant move in the municipal bond market by purchasing bonds issued earlier this year through a transaction entirely reliant on blockchain technology. The acquisition was made via BlackRock's actively managed ETF, the iShares Short Maturity Municipal Bond ETF (MEAR), which was established in 2015 and manages approximately $750 million in client assets. The securities were issued by the city of Quincy, Massachusetts, in April, with JPMorgan acting as the underwriter. The sale was facilitated using an application on JPMorgan's private, permissioned blockchain platform. This marks the first municipal bond transaction to be fully purchased, settled, and held using blockchain technology. BlackRock has stated that it was among the first investors to acquire a portion of these bonds. Pat Haskell, head of BlackRock's municipal bonds group, highlighted the transformative potential of blockchain technology in capital markets, noting that its use throughout the bond's lifecycle is a prime example of its capabilities. Haskell emphasized that this transaction represents a pivotal moment for the municipal bond market and underscores BlackRock's commitment to innovation.