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BlackRock, one of the world’s largest asset managers, has seen notable success with its newly launched tokenized money market fund. build. The fund, which records shared ownership on the Ethereum (ETH) blockchain, has raised more than $160 million in just one week since its launch.
BlackRock’s BUIDL Fund
According to Bloomberg report, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) invests primarily in cash, U.S. Treasury bills, and repurchase contracts. The fund rewards holders with the cryptocurrency BUIDL worth $1 per token.
Shareholders can transfer these tokens to other verified addresses using digital wallets approved by BlackRock’s investment vehicle partner, Securitize. Tokenized funds address several key use cases, including: Financial management For crypto companies, it is an alternative to stablecoins as it supports Treasury bill derivatives and serves as collateral for borrowing and trading.
It is worth noting that Securitize Markets, an SEC-registered alternative trading system, plays a key role in facilitating the transfer of tokens between market participants.
The SEC has recently stepped up its scrutiny of Ethereum’s native token, ETH, but Securitize CEO Carlos Domingo has stressed that investigations should be separate from the underlying blockchain infrastructure. . Domingo also highlights the time-tested nature of the public Ethereum blockchain, which provides a “solid foundation” for tokenization activities.
as before report With our sister website Bitcoinist, BlackRock has emerged as a champion of cryptocurrency and tokenization within mainstream financial institutions. Chairman and CEO Larry Fink believes that all financial assets will eventually be tokenized.
Company’s iShares Bitcoin Trust (IBIT) has already attracted more than $13 billion in inflows since its launch as an exchange-traded fund (ETF) in January. With the launch of the BUIDL Fund, BlackRock continues to demonstrate its appetite for exploring new digital asset solutions.
Ondo Finance to transfer $95 million in assets to BlackRock
Ondo Finance, a platform specializing in tokenized real-world assets (RWA), has moved Assets worth $95 million will be donated to BlackRock’s BUIDL fund. This strategic move allows Ondo Finance to facilitate instant settlement of his OUSG, a token backed by the US Treasury.
This makes Ondo Finance a major participant in the BUIDL ecosystem. According to on-chain researcher Tom Wang, the company currently holds $15 million worth of BUIDL tokens.over $95 million, plus essentially $110 million worth of BUIDL tokens.
Researchers noted that the partnership could further strengthen the tokenized U.S. Treasury market, potentially reaching $1 billion in value. The team behind the Ondo Finance platform summarized this in their announcement:
We are pleased to see BlackRock embrace tokenization of securities with the launch of BUIDL, and in particular extensive collaboration with ecosystem participants. This not only further validates the original concept of tokenized US Treasury funds, but also our belief that the tokenization of traditional securities on public blockchains is the next big step in the evolution of financial markets. It also supports the claim.
At the time of writing, ONDO, the native token of Ondo Finance, is trading at $0.909, up more than 4% in the past 24 hours. This positive momentum added to the impressive 115% price increase trend recorded over the past 30 days.
Featured image from Shutterstock, chart from TradingView.com
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