BlackRock, the world's largest asset manager, has launched its first tokenized fund on the Ethereum blockchain called the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund aims to provide a stable $1 value per token and invests in cash, U.S. Treasuries, and repurchase agreements to offer yield to investors while their assets are held on the blockchain.
Securitize, a blockchain-focused firm, is serving as the transfer agent, tokenization platform, and placement agent for the BUIDL fund. BlackRock has also made a strategic $47 million investment in Securitize, with Joseph Chalom, BlackRock's Global Head of Strategic Ecosystem Partnerships, joining Securitize's Board of Directors.
The BUIDL tokens are available to eligible accredited investors under Rule 506(c) and can be traded 24/7 between pre-approved investors, providing round-the-clock access to Treasury markets. BNY Mellon is the custodian of the underlying assets and provides interoperability between digital and traditional markets.
BlackRock's investment in Securitize and the launch of BUIDL demonstrate the asset manager's commitment to the tokenization of real-world assets (RWAs) and its belief in the potential of blockchain technology to transform capital markets infrastructure. The move also signals growing institutional interest in crypto and the increasing integration of traditional finance with the digital asset space.
The BUIDL fund, with its focus on providing a stable yield while holding assets on the blockchain, represents a new era for crypto investments, offering a more accessible and regulated entry point for institutional investors. As the crypto market continues to mature, partnerships between traditional finance giants and blockchain-focused firms are expected to drive further innovation and adoption of tokenized assets.