coindesk.com
A vote was passed on Tuesday to move recommendations on the use of tokenized shares of money-market funds to a larger body.
A subcommittee of the CFTC moved its recommendations to the full committee but the recommendations are not yet known.
The likes of BlackRock and Franklin Templeton could see tokenized shares of their money-market funds pledged in trading after a major group under the aegis of the Commodity Futures Trading Commission (CFTC) approved guidelines for their use, Bloomberg reported on Thursday.
A subcommittee of the CFTC’s Global Markets Advisory Committee voted to pass the recommendations on to the full committee, which is expected to vote on the recommendations later this year, the report said citing two people familiar with the matter.
The report did not reveal what the recommendations were but the mere action that they have been sent to the full committee could be seen as the next step.
The CFTC did not immediately respond to a CoinDesk request for comment.
BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) is an example of how creating blockchain-based tokens of traditional investments such as bonds and funds is a fast-growing use case for the larger digital asset space. The BUIDL fund became the largest tokenized Treasury fund just six weeks after its late launch in March. It surpassed $500 million market value in July.
The CFTC’s Global Markets Advisory Committee includes BlackRock and Bloomberg LP, parent of Bloomberg News, the report said.
Read More: Tokenized Treasury Funds Pass $2B Market Cap Amid BlackRock’s Explosive Growth