Globally renowned asset manager, BlackRock, has made significant strides with the successful launch of its latest tokenized money-market fund named BUIDL. Sparking significant interest, the fund, which utilizes the Ethereum blockchain to log shared ownership, has seen an influx of more than $160 million within the inaugural week of its operation.
With the launch of the BlackRock USD Institutional Digital Liquidity Fund, fondly known as BUIDL, the investment giant has ventured into a wide array of investments with a keen focus on cash, US Treasury bills, and repurchase agreements. Unique in its structure, the fund rewards its holders with BUIDL, a dedicated cryptocurrency, each valued at $1 per token.
The shared tokens provide the flexibility for institutional shareholders to transfer them to other approved digital addresses using digital wallet services endorsed by BlackRock’s investment partner, Securitize. This tokenized fund serves crucial functionalities that are in demand in today’s economy such as treasury management for crypto-based companies, derivative support for Treasury bills, and lending and trading collateral, offering a compelling alternative to existing stablecoins.
Securitize Markets, an alternative trading system registered with the Securities and Exchange Commission (SEC), has emerged as an essential facilitator for transferring tokens between market stakeholders. As the SEC heightens vigilance on the activity around Ethereum’s native token, ETH, Securitize’s CEO Carlos Domingo makes it clear that these investigative operations are separate from the underlying foundational blockchain infrastructure. Domingo also emphasized the tried-and-tested nature of the public Ethereum blockchain, highlighting its rock-solid framework as a launchpad for tokenization operations.
The financial titan, BlackRock, has shown a staunch stance as a proponent for cryptocurrencies and tokenization within the mainstream financial arena. The firm’s leadership, embodied by Chairman and CEO Larry Fink, maintains the vision that eventually every financial asset will be tokenized. The company’s bold leap into the digital sphere with the iShares Bitcoin Trust (IBIT), which has already seen a staggering $13 billion influx since its inception as an exchange-traded fund (ETF) in January, suggests a deliberate dive into testing new digital asset solutions.
In an influential move, Ondo Finance, a platform that specializes in shifting tokenized real-world assets, has relocated $95 million worth of assets into BlackRock’s BUIDL fund. This strategic maneuver allows Ondo Finance to enable instantaneous settlements for its US Treasury-backed token, OUSG.
This makes Ondo Finance a significant player in the BUIDL network. On-chain researcher Tom Wan explains that with $15 million worth of BUIDL tokens currently held, along with the previously mentioned $95 million worth, a staggering $110 million worth of BUIDL tokens will be produced.
This collaboration strengthens the tokenized US Treasury market with the potential to reach a staggering $1 billion in value. The partnership was warmly received by the Ondo Finance team, stating their excitement for BlackRock’s embrace of securities tokenization, particularly commending the broad cooperation with ecosystem players.
Ondo Finance’s native token, ONDO, is witnessing upward momentum, trading at $0.909 at the time of this report and recording a significant surge of 4% in the last 24 hours. The current positive trend compliments its already impressive 115% spike recorded over the past month.
