BlackRock Deepens Crypto Push, Debuts First Tokenized Fund On Ethereum
BlackRock has launched its first tokenized investment fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), marking a significant shift towards blockchain integration in traditional finance.
The fund, built on the Ethereum network, aims to provide qualified investors with U.S. dollar yields accessible through Securitize Markets, LLC. The fund focuses on solving client issues in the digital space and offers a stable token value pegged at $1, distributing dividends directly to investors’ wallets monthly. It focuses on investments in cash, U.S. Treasury bills, and repurchase agreements, ensuring yields for token holders on the blockchain. The fund introduces 24/7 token transfers among pre-approved investors and flexible custody options.
Prominent crypto infrastructure providers like Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks are among the first participants supporting BUIDL. BlackRock has chosen Bank of New York Mellon for asset custody and fund management, while Securitize will manage tokenization and fund operations. Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, has been appointed to Securitize’s Board of Directors.
The fund’s token shares will be issued under specific U.S. securities regulations, with an initial investment threshold of $5 million. PricewaterhouseCoopers LLP will audit the fund operations to ensure compliance with relevant regulations.
(With inputs from Shikha Singh)
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