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BlackRock is launching a tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund. According to SEC filings, the company partnered with tokenization company Securitize.
The size of the Cayman Islands fund was not disclosed in the filing, but the minimum investment amount is $100,000.
CEO Larry Fink has been very optimistic about tokenization.
Additionally, the Spot Bitcoin ETF, which IBIT launched about 10 weeks ago, currently has over $15 billion in assets under management. The only two other ETFs with large inflows this year are Vanguard’s S&P 500 Fund and BlackRock’s iShares. Each has over $400 billion in assets under management (AUM).
BlackRock is also the custodian of the Circle reserves that underpin the USDC stablecoin. So between IBIT and Circle funds alone, the cryptocurrency sector accounts for over $40 billion of his BlackRock assets. However, BlackRock has more than $9 trillion in assets under management.
The role of Securitize – multi-asset class collateral?
Securitize has worked hard to achieve this. It made headlines in 2022 when it tokenized the KKR fund on the Avalanche public blockchain. However, Securitize took the lead by creating a feeder fund as part of Securitize Capital and tokenizing it. In this case, BlackRock is using his Securitize infrastructure to issue digitally native funds.
For context, it’s worth noting that Securitize is launching a lending solution. One of the main potential benefits of tokenization is that collateral can be moved and mixed and matched across asset classes. Potentially, investors could pledge cryptocurrencies to securitizations as collateral to invest in this type of fund.
Libre, a fund distribution protocol backed by Nomura’s Laser Digital and Alan Howard’s Web, was launched yesterday.n. We are also considering using the BlackRock Treasury ETF precisely to provide on-chain digital liquidity. When switching between funds, it is easier to keep your funds in an on-chain money market fund than to move them off-chain.
Meanwhile, the price of the Ondo Finance token soared from about 40 cents to 56 cents. Ondo is a public blockchain protocol that tokenizes BlackRock funds. Ondo is not targeting US investors, but on the other hand, this looks like competition.
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