BlackRock, the American asset management giant, has taken a significant step into the blockchain world by launching its first tokenized fund on the Ethereum blockchain. The fund, known as the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), is a result of BlackRock’s partnership with Securitize, a startup that specializes in tokenizing real-world assets.
This move is a notable development for BlackRock, which has been making waves in the crypto industry over the past year. In particular, its support for the spot Bitcoin ETF last year played a crucial role in getting approval for the product. However, the launch of BUIDL with Securitize marks a significant shift for the company, as it aims to provide qualified investors with the opportunity to earn Dollar rewards through the fund.
One of the key features of the BUIDL product is its collaboration with BNY Mellon, a banking giant that will help ensure interoperability between the digital and mainstream finance markets. Additionally, the BUIDL ecosystem includes other important players such as Anchorage Digital Bank, Fireblocks, and Coinbase, all of which are long-term partners of BlackRock in the crypto space.
The fund will offer a stable value of $1 per token, with the assets under management being invested in cash, US Treasury bills, and repurchase agreements. Subscribers of BUIDL will also have the ability to issue and trade ownership on the Ethereum blockchain, as well as gain exposure to on-chain products and benefit from on-chain settlement.
This move by BlackRock is part of a larger trend of mainstream firms embracing crypto offerings. Commerzbank, for example, recently became the first full-service bank in Germany to receive a crypto custody license. Ripple and its subsidiary Metaco have also been instrumental in bridging the gap for mainstream banks looking to offer crypto custody services. HSBC, a British multinational bank, embraced their solution last year to offer institutional crypto custody services.
It is important to note that the information provided in this article is for informational purposes only and should not be considered financial advice. The views expressed are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses that may occur.