- Blackrock has unveiled BUIDL, a tokenized fund offering qualified investors the chance to earn US dollar yields
- The platform is backed by serious players such as Coinbase, BNY Mellon and PwC
- Blackrock has taken a position in a key partner, Securitize, as part of the deal
Blackrock has taken another step into the digital asset realm as it yesterday unveiled a pioneering tokenized fund, the Blackrock USD Institutional Digital Liquidity Fund (BUIDL). Built on Ethereum, the platform will allow qualified investors the opportunity to earn US dollar yields through Securitize Markets, with which Blackrock has partnered for the project. Blackrock revealed in a press release that tokenization is a “key focus of Blackrock’s digital asset strategy” and that BUIDL solves “real problems for our clients.”
Blackrock Has Big Plans for BUIDL
Blackrock described the BUIDL Fund as a platform designed to provide investors with expanded access to on-chain offerings, transparent settlement, and seamless transfers across platforms. BNY Mellon will facilitate interoperability for the Fund between digital and traditional markets, three years after the bank began publicly discussing digital assets.
BUIDL aims to maintain a stable value of $1 per token and will distribute daily accrued dividends directly to investors’ wallets. The Fund invests in cash, US Treasury bills, and repurchase agreements, offering investors opportunities to earn yield while holding tokens on the blockchain. Initial ecosystem participants in BUIDL include Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks, among others.
Blackrock will serve as the investment manager, while BNY Mellon will act as the custodian of the Fund’s assets and its administrator. To facilitate the deal, Blackrock has also made a strategic investment in Securitize, which will function as the transfer agent and tokenization platform. PricewaterhouseCoopers has been appointed as the Fund’s auditor.
The launch of the BUIDL Fund marks a significant milestone in the evolution of digital asset management, offering institutional investors innovative opportunities in the blockchain space. The move shows that Bitcoin is not the end of these entities’ involvement in the digital asset space but perhaps just the beginning.
Tokenization Could “Fundamentally Transform Capital Markets”
In the press release, Robert Mitchnick, Head of Digital Assets at Blackrock, emphasized the significance of this initiative in advancing their digital assets strategy:
This is the latest progression of our 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.
Securitize CEO Carlos Domingo meanwhile highlighted the transformative potential of securities tokenization in capital markets, stating, “Tokenization of securities could fundamentally transform capital markets. Today’s news demonstrates that traditional financial products are being made more accessible through digitization.”
The news comes just a day after Canton Network completed the “most comprehensive” asset tokenization test involving several multinational entities.
