S&P gives BlackRock tokenized reserve fund top stability rating
The rating recognizes the fund’s ability to maintain a stable net asset value, while S&P separately reaffirmed USDT among the lowest-rated stablecoins under its existing assessment framework.
S&P Global has awarded BlackRock's tokenized money market reserve fund its highest stability rating, recognizing the fund's capacity to maintain a stable net asset value (NAV) under its assessment framework. The rating marks a significant institutional endorsement of BlackRock's push into tokenized financial products, which operate on blockchain infrastructure while holding traditional short-term assets.
BlackRock's tokenized reserve fund is part of the firm's broader BUIDL product suite, launched in 2024 in partnership with tokenization platform Securitize. The fund holds assets such as U.S. Treasury bills and repurchase agreements, with tokens representing shares issued on-chain. S&P's stability ratings for such funds evaluate factors including portfolio credit quality, liquidity, and NAV sensitivity — criteria traditionally applied to money market funds.
In a separate but related development, S&P reaffirmed its assessment of Tether's USDT among the lowest-rated stablecoins under its existing stablecoin evaluation framework. The contrast between the two ratings underscores the growing divide between institutional-grade tokenized products and retail-facing stablecoins when scrutinized by traditional credit rating methodologies. Analysts note that such differentiation may influence how institutional investors allocate capital within the digital asset space.
As regulatory frameworks for digital assets continue to take shape globally, S&P's expanding coverage of tokenized products signals that legacy financial institutions are increasingly applying conventional risk tools to on-chain instruments. Market participants will be watching whether other major rating agencies follow with comparable assessments.
Source: Cointelegraph
