BlackRock Inc. is betting that tokenized money-market funds can move past their origins as a crypto-native yield product and take on a central role in how traditional Wall Street firms post collateral and transfer ownership, though executives acknowledge that regulatory and infrastructure gaps still stand in the way.

The asset manager’s first tokenized money-market fund, BUIDL, has grown to roughly $2.3 billion since its 2024 launch, according to Bloomberg, placing it among the largest products of its kind. BlackRock has since rolled out tokenized cash products in the United States and Europe and in September won approval for a Hong Kong dollar digital liquidity fund that can accept both conventional and digital cash.

At the heart of…