The asset management giant also made a strategic investment in tokenization firm Securitize
- BlackRock is launching a new Real-World Asset (RWA) tokenization fund on the Ethereum blockchain.
- The fund, named BlackRock USD Institutional Digital Liquidity Fund, will be represented by the BUIDL token.
- Securitize serves as the transfer agent and tokenization platform, while BNY Mellon acts as the fund’s custodian.
Fund Structure and Participants
The BUIDL token is fully backed by:
- Cash
- U.S. Treasury bonds
- Repurchase agreements
Holders will receive daily yield payments via blockchain settlements. Key ecosystem partners include:
- Anchorage Digital Bank
- BitGo
- Coinbase
- Fireblocks
Strategic Move into Tokenization
BlackRock’s Head of Digital Assets, Robert Mitchnick, stated:
"This evolution of our digital assets strategy focuses on solving real-world problems for clients. We’re excited to collaborate with Securitize."
The announcement follows regulatory filings revealing BlackRock’s partnership with Securitize, fueling speculation about a tokenized fund.
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Industry Trends
Traditional finance giants are increasingly adopting tokenization:
| Institution | Progress |
|----------------------|-----------------------------------|
| Citi | Blockchain-based treasury bonds |
| JPMorgan | On-chain repo platforms |
| Franklin Templeton | Tokenized money market funds |
The RWA sector has surged, with tokenized U.S. Treasuries growing from $100M in early 2023 to **$730M** today.
Why Tokenization Matters
- Liquidity: Enables fractional ownership of high-value assets.
- Transparency: Blockchain audit trails reduce settlement risks.
- Yield Opportunities: Crypto firms earn steady returns via on-chain instruments.
BlackRock CEO Larry Fink previously called Bitcoin ETFs a "stepping stone to tokenization" in a CNBC interview.
FAQs
What is the BUIDL token?
A blockchain-based representation of BlackRock’s fund, backed by cash equivalents and Treasuries.
How does tokenization benefit investors?
It unlocks 24/7 settlement, automated compliance, and access to traditionally illiquid markets.
Which firms support BlackRock’s fund?
BNY Mellon (custodian), Securitize (tokenization), and major crypto infrastructure providers.
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