[ad_1]
Investors may subscribe to participate in the Fund through Securitize Markets, LLC.
BlackRock invests in Securitize to power digital asset infrastructure transformation
New York, March 20, 2024–(BUSINESS WIRE)–BlackRock today announced the first tokenized fund issued on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (“BUIDL” or the “Fund”). BUIDL offers accredited investors the opportunity to earn US dollar yield by subscribing to the Fund through Securitize Markets, LLC.
“This is the latest development in our digital asset strategy,” said Robert Mitchnick, head of digital assets at BlackRock. “We are focused on developing solutions in the digital assets space that help our clients solve real-world problems, and we are excited to be working with Securitize.”
Tokenization remains a key focus of BlackRock’s digital asset strategy. Through the tokenization of funds, BUIDL enables the issuance and trading of ownership on the blockchain, expands investor access to on-chain products, provides instant and transparent settlement, and provides cross-platform provides important benefits to investors. BNY Mellon enables fund interoperability between digital and traditional markets.
“Tokenization of securities has the potential to fundamentally transform capital markets. Today’s news shows that digitalization is making traditional financial products more accessible. “We are proud to be BlackRock’s transfer agent, tokenization platform and intermediary agent of choice in digitizing and expanding access to investment products,” said Securitize Co-Founder and CEO. ) said Carlos Domingo.
BUIDL aims to provide a stable value of $1 per token, with daily accrued dividends paid directly to investors’ wallets as new tokens every month. The fund invests 100% of its total assets in cash, US Treasuries, and repurchase contracts, allowing investors to earn yield while holding their tokens on the blockchain. Investors can transfer their tokens to other pre-approved investors 24/7. Fund participants also have flexible custody options that allow them to choose how they hold their tokens.
BUIDL’s initial ecosystem participants include Anchorage Digital Bank NA, BitGo, Coinbase, Fireblocks, and other market participants and infrastructure providers in the cryptocurrency industry.
BlackRock Financial Management, Inc. will serve as the Fund’s investment manager, and Bank of New York Mellon will serve as the custodian and administrator of the Fund’s assets. Securitize acts as a transfer agent and tokenization platform, managing tokenized shares and reporting on subscriptions, redemptions, and distributions of the Fund. Securitize Markets acts as a placement agent and makes the Fund available to qualified investors. PricewaterhouseCoopers LLP has been appointed as the Fund’s auditor for the period ending December 31, 2024.
The Fund issues shares pursuant to Rule 506(c) under the Securities Act of 1933 and Section 3(c)(7) of the Investment Company Act. The Fund’s minimum initial investment is $5 million.
BlackRock also has strategic investments in securitization companies. As part of the investment, Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, has been appointed to Securitize’s board of directors.
About Blackrock
BlackRock’s purpose is to help more people experience a life of financial prosperity. As a fiduciary for investors and a leading provider of financial technology, we help millions of people build savings that last a lifetime by making investing easier and more affordable. For more information about BlackRock, please visit www.blackrock.com/corporate.
About securitization
Securitize, a leader in the tokenization of real-world assets, is driving the compliant digitization of financial assets through next-generation blockchain technology. Securitize, or through its subsidiaries, is a registered broker-dealer (member Finra/SIPC), operates a primary marketplace, alternative trading systems, a top 10 transfer agent, and has an exempt reporting advisor. For more information, please visit http://www.securitize.io.
disclosure
BUIDL interests have not been registered with the Securities and Exchange Commission under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. Interests in BUIDL will not be listed on any exchange.
Investing in private markets is considered speculative and involves risks, including the potential loss of your investment, and may not be suitable for all shareholders. Discussions about liquidity are purely speculative. Past performance is not indicative of future results.
Securities are offered through Securitize Markets, LLC (“Securitize Markets”), a registered broker-dealer and member FINRA/SIPC. Neither Securitize Markets nor its affiliates provide investment advice or recommendations to any person. Nor should any communications in this document or in any other medium be construed as such. Securities offered by Securitize Markets have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
BUIDL may not be able to maintain a stable value of $1.00 per token at all times. Investing in blockchain-based tokens, such as investing in BUIDL, involves a high degree of risk, including risks that are different from investing in traditional assets. These risks include, but are not limited to, regulatory uncertainty, market adoption, market manipulation, market withdrawal, price fluctuations, and security risks, which could result in investors losing their principal. may be exposed to. Investing in private placements is also speculative and involves a high degree of risk. Investors must be able to tolerate loss on their entire investment. Offers to sell, or the solicitation of offers to buy, securities may only be made to accredited investors through a formal offering document that contains important information regarding the risks, fees and expenses associated with the applicable security. Investors should conduct their own due diligence and are encouraged to consult financial advisors, attorneys, accountants, tax advisors and other professionals who can assist them in understanding and evaluating the risks associated with investment opportunities. Past performance is not indicative of future results.
BlackRock Financial Management, Inc., a Delaware corporation that is an indirect wholly owned subsidiary of BlackRock, Inc. (the “Investment Manager”), is the Fund’s investment manager and is responsible for its investment activities in accordance with its policies. Management and oversight of the Fund’s Board of Directors. The Investment Manager is registered with the Securities and Exchange Commission as an investment adviser under the Investment Advisers Act of 1940, as amended.
In connection with BUIDL’s services as an introducing agent, the Investment Manager will pay Securitize Markets the following cash compensation: (i) an upfront flat fee, and (ii) a quarterly fee for each investor introduced to BUIDL by Securitize. The per-fee market is generally equal to a percentage of the average daily net asset value of such investor’s interest in BUIDL during the applicable calendar quarter, and the amount of the upfront fee is deducted against the quarterly fee.
The fees paid by the Investment Manager to Securitize Markets for acting as an introduction agent to BUIDL create a conflict of interest for Securitize Markets. In particular, the amount of compensation that Securitize Markets receives depends on the number of investors introduced to BUIDL. As a result, Securitize Markets is encouraged to recommend prospective investors to invest in her BUIDL. Additionally, BlackRock’s investments in securitization markets create conflicts of interest for investment managers.
Securitize Markets or one or more of its affiliates may be a customer or investor of BlackRock.
View source version on businesswire.com. https://www.businesswire.com/news/home/20240320771318/ja/
contact address
media contact
Blackrock: Chantal.DeSoto@blackrock.com, Amanda.Knox@blackrock.com
Securitize: Suzanne.Pinto@securitize.io
[ad_2]
Source link
