BlackRock’s Tokenized Fund Bolsters Ethereum’s TVL and Liquidity

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BlackRock’s Tokenized Fund Bolsters Ethereum’s TVL and Liquidity
  • BlackRock launches its first tokenized fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
  • Ethereum advocate AdrianoFeria comments on BUIDL’s potential positive impact on Ethereum’s bullish trend.
  • AdrianoFeria states that BlackRock’s advocacy for institutional adoption bolsters ETH’s TVL and liquidity.

Investment manager BlackRock’s recent launch of its first tokenized fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL), has garnered widespread attention. In response to BlackRock’s development, Ethereum advocate AdrianoFeria shared an X post, forecasting BUIDL’s bullish impact on ETH.

BlackRock unveiled Ethereum-based BUIDL on March 20, with tokenization identified as a key focus of the platform’s digital asset strategy. Subsequently, BlackRock received “extremely broader participation” from multiple organizations, including BNY Mellon, as pointed out by Messari analyst Tom Dunleavy.

According to the analyst’s X post, the financial services corporation Bank of New York Mellon will be in charge of supervising asset custody and management, while BlackRock will be the sole investment manager. Meanwhile, PWC serves as the fund auditor, and Securitize steps in as the transfer agent and tokenization platform. Commenting on their alliance with Securitize, Robert Mitchnick, BlackRock’s Head of Digital Assets, stated, “We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize.”

In his recent post, AdrianoFeria asserted that BlackRock’s advocacy for the institutional adoption of ETH would significantly impact Ethereum’s potential bull market. He added that the institutional adoption would boost Ethereum’s total value locked (TVL) and liquidity, “creating a positive feedback  effect that snowballs and cements ETH’s reputation as the most trusted, stable, and liquid smart contract network.” The ETH proponent stated,

“ ETH will dominate the institutional market, and the race for adoption will be over long before competing L1s become stable and build a Lindy effect that is equivalent to ETH.”

Further, AdrianoFeria posited that institutions would prefer ETH over other Layer 1s, considering Ethereum’s adherence to security, liveliness, and stability. While ETH’s L1 remains secure like L2s, a majority of the TVL could be retained despite a possible overflow of a smaller portion of the TVL. 

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