BlackRock yesterday announced the BlackRock USD Institutional Digital Liquidity Fund (BUIDL, or the “Fund”), the company’s first tokenized fund issued on a public blockchain. By subscribing to the Fund through Securitize Markets, LLC, BUIDL will give qualified investors the chance to earn yields denominated in US dollars.
TakeAway Points:
- BlackRock yesterday unveiled its first tokenized fund issued on a public blockchain.
- Subscriptions are available for investors to join the fund through Securitize Markets, LLC.
- BlackRock invests in Securitize to propel the infrastructure of digital assets through transformation.
BlackRock Tokenization
According to the report, in BlackRock’s digital asset strategy, tokenization is still a primary goal.
“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.” Robert Mitchnick, BlackRock’s Head of Digital Assets, said.
By giving investors access to on-chain offerings, facilitating the issuing and selling of ownership on a blockchain, facilitating rapid and transparent settlement, and permitting platform transfers, BUIDL will provide significant advantages to investors through the tokenization of the Fund. The Fund’s ability to function in both traditional and digital markets will be made possible by BNY Mellon.
“Tokenization of securities could fundamentally transform capital markets. Today’s news demonstrates that traditional financial products are being made more accessible through digitization. Securitize is proud to be BlackRock’s transfer agent, tokenization platform, and placement agent of choice in digitizing and expanding access to its investment products,” said Carlos Domingo, Securitize co-founder and CEO.
BlackRock’s BUIDL
BUIDL aims to provide a consistent $1 token value and distribute daily dividends that have accumulated straight into investors’ wallets as fresh tokens every month. Holding the token on the blockchain, investors can earn yield while the Fund invests all of its entire assets in cash, U.S. Treasury notes, and repurchase agreements. Tokens can be transferred to other pre-approved investors around-the-clock, every day of the year. Additionally, fund participants will have customisable custody options that let them decide how to keep their tokens.
In addition to other market players and infrastructure suppliers in the cryptocurrency space, the original ecosystem members of BUIDL include BitGo, Coinbase, Fireblocks, Anchorage Digital Bank NA, and others.
The Fund’s administrator and asset custodian will be Bank of New York Mellon, while BlackRock Financial Management, Inc. will handle investments for the latter. In addition to managing the tokenized shares and providing data on fund subscriptions, redemptions, and payouts, Securitize will serve as a transfer agent and tokenization platform. In its capacity as a placement agent, Securitize Markets will make the Fund accessible to qualified investors. PricewaterhouseCoopers LLP has been designated as the auditor of the Fund through December 31, 2024.
In accordance with Section 3(c)(7) of the Investment Company Act and Rule 506(c) of the Securities Act of 1933, the Fund will issue shares. A minimum of $5 million must be invested initially in the Fund.
Additionally, BlackRock has strategically invested in Securitize. BlackRock’s Global Head of Strategic Ecosystem Partnerships, Joseph Chalom, has been nominated to Securitize’s Board of Directors as part of the investment.
About
BlackRock aims to help more and more people experience financial well-being. As a fiduciary to investors and a leading financial technology provider, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.
Securitize is a leader in the tokenization of real-world assets and is using next-generation blockchain technology to drive the compliant digitization of financial assets. Through its subsidiaries, Securitize is a registered broker-dealer (member Finra / SIPC) and runs a primary marketplace, an alternative trading system, a top 10 transfer agent, and an exempt reporting adviser.
