BlackRock ETF purchases municipal bonds issued through blockchain in Quincy, Massachusetts, USA

PANews reported on December 18th that a fund under BlackRock purchased municipal bonds that were issued earlier this year in a transaction that relied entirely on blockchain technology. According to a company spokesperson, BlackRock purchased these bonds through the actively managed ETF - iShares Short-Term Municipal Bond Active ETF (MEAR). The fund was established in 2015 and has approximately $750 million in client assets. The securities were issued in April in Quincy, Massachusetts, with underwriter JPMorgan Chase using an application on its private, permissioned blockchain platform to facilitate sales. This is the first municipal bond transaction to be fully purchased, settled, and held on the platform through blockchain. BlackRock said it was one of the first investors to purchase part of the bonds in the transaction. Pat Haskell, head of the municipal bond group at BlackRock, said, “Using blockchain technology throughout the entire lifecycle of bonds is just one of many examples of how this technology has the potential to change numerous aspects of the capital market. This transaction is an important moment for the municipal bond market, and also demonstrates BlackRock’s commitment to innovation.”