- BlackRock launches an Ethereum-based tokenized fund to enhance asset liquidity.
- Strategic investment in Securitize strengthens BlackRock’s position in digital assets.
- Additional support will come from BNY Mellon, Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks.
As a step in the finance and crypto industries, BlackRock, the world’s biggest asset manager, has recently launched a fund for tokenized assets on the Ethereum network.
Named the BlackRock USD Institutional Digital Liquidity Fund, it runs with the BUIDL token that is fully collateralized with cash, U.S. Treasury bills, and repurchase agreements. This approach ensures daily yield distribution to token holders through blockchain technology.
Additionally, BlackRock has made a strategic investment in Securitize to power up its position in the digital asset space. Securitize, a firm that performs tokenization and transfer agent functions of the fund, is the one in charge of it while the details of the investment process remain confidential.
The fund, registered last year in the British Virgin Islands, is a significant extension of BlackRock’s delving into the digital assets field. Through the Securitize experience in tokenizing real-world assets (RWA), the fund will be a manifestation of the novel age of financial instruments, which are designed to promote the liquidity and effectiveness of assets.
The joint effort between BlackRock and Securitize was alluded to in the previous regulatory filing, which led to widespread speculation about the possibility of the development of a tokenized fund. According to a press release, BNY Mellon will custodize the fund’s assets. Additional support will come from Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks, creating a robust ecosystem for the fund’s operations.
This development is a continuation of BlackRock’s deepening foray into digital assets, as stated by Robert Mitchnick, BlackRock’s Head of Digital Assets. Mitchnick emphasized the company’s focus on solving client issues through digital asset solutions, highlighting the significance of this launch in BlackRock’s digital assets strategy.
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 parallel developments within the crypto space, speculation is mounting over the potential approval of a spot Solana ETF, following the pathway laid by the spot Bitcoin ETF. The progression towards such approvals is expected to begin with the incorporation of a Solana futures ETF, mirroring the precedents set by Bitcoin and Ether futures ETFs. This approach aims to pave the way for the eventual approval of a spot Solana ETF, indicating a growing integration of traditional finance (TradFi) with altcoin markets.
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