BlackRock Joins Asset Tokenization Race With Ethereum Fund Launch
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BlackRock(BLK), an asset management giant, launched its tokenized asset fund, the BlackRock USD Institutional Digital Liquidity Fund, on the Ethereum network. it is symbolized by the blockchain-based BUIDL token.
It is fully supported by repurchase agreements, U.S Treasury bills, and cash, offering daily yield payouts to token holders through blockchain channels.
BlackRock Aims To Facilitate Tokenization And Innovation In Digital Assets
BlacRock stated in a press release that while BNY Mellon is the custodian of the fund’s assets, securitize will serve as a tokenization platform and a transfer agent. Alongside Fireblocks, Coinbase, BitGo, and Anchorge Digital Bank NA participating in the fund’s ecosystem.
According to the press release, BlackRock was also involved in a strategic investment in Securitize, however, the terms of the transaction were not disclosed.
The head of Digital Assets, Robert Mitchnick, underscores this initiative as the latest development of their digital assets approach. He highlighted the team’s collaborative effort with Securitize with a focus on offering innovative solutions in the digital assets network to help unravel challenges for their clients.
CoinDesk reported that the announcement came following a regulatory filing report as BlackRock integrated a fund with Securitize. According to the report, the fund encourages speculations of a tokenized fund as viewers pointed to blockchain transactions to send the vehicle
BlackRock Seeks To Pioneer Innovation In Traditional Finance
BlackRock positioned itself as the newest traditional finance giant to venture into the tokenization field after firms such as JPMorgan, Franklin Templeton, and Citi made headways with the technology.
Creating tokens based on blockchain for traditional investment like funds and bonds, renowned as tokenization finance (TradFi) and digital assets which are becoming more intertwined. For example, Tokenized U.S. Treasuries have surged from $100 million in early 2023 to $730, as cryptocurrency Company seeks to acquire a steady yield by utilizing their on-chain funds.
Larry Fink, the Chief Executive Officer at BlockRock reviewed in a CNBC interview earlier this year, that the firm’s spot BTC ETF was a stepping stone toward engaging tokenization.
BlackRock, Inc. is an American global investment corporation based in New York City, and it is recognized as the world’s largest asset manager, with $10 trillion in assets as of December 31, 2023.
BlackRock operates across 38 countries with 78 offices and has a client base of 100 nations. BlckRock is known to be the manager of the iShares exchange-traded funds group, with The State Street and Vanguard Group, which is considered to be among the leading index fund managers.
