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In its latest foray into cryptocurrencies, financial giant BlackRock launched The first tokenized fund on the Ethereum blockchain. The BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL, is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements. Provides eligible investors with the opportunity to earn US dollar yield.
BlackRock is partnering with Securitize as the transfer agent and tokenization platform, and with BNY Mellon as the custodian of the fund’s assets. The fund’s ecosystem includes Anchorage Digital Bank NA, BitGo, coinbaseand Fireblocks will provide the infrastructure to the fund.
“This is the latest advancement in our digital asset strategy.” Said Robert Mitchnick, head of digital assets at BlackRock, said: “We are focused on developing solutions in the digital asset space that help solve real-world problems for our clients, and we are excited to be working with Securitize.”
The BlackRock USD Institutional Digital Liquidity Fund was first registered in the British Virgin Islands last year. The fund filed a Form D with the U.S. Securities and Exchange Commission.
“BUIDL enables the issuance and trading of ownership on the blockchain, expands investor access to on-chain products, provides instant and transparent payments, and enables cross-platform remittances. This provides important benefits to investors.” Said.
What is tokenization and how does the BlackRock Fund work?
Simply put, tokenization is the process of digitally representing real-world assets on a blockchain.Blackrock consistently mentioned The company’s digital asset strategy includes launching ETFs and tokenizing financial assets.
In the case of BUIDL, eligible investors with at least $25 million in investable assets will be able to create a digital wallet and sign up with Securitize to invest in the fund. The fund’s minimum initial investment amount is $5 million. An investor can buy tokens at a stable price of $1 and earn interest in the form of tokens. Tokens can be easily transferred from one wallet to another on the blockchain network.
Everyone wants a piece of blockchain
BlackRock’s latest move comes months after the company launched the largest Bitcoin ETF. iShares Bitcoin Trust,it is Continued record influx. Other large investment firms such as Franklin Templeton and Ondo Finance have also introduced tokenized versions of their money market funds and ETFs, respectively.
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