Key Points
- BlackRock’s new initiative is called the BlackRock USD Institutional Digital Liquidity Fund, and it’s developed in partnership with Securitize.
- The asset manager submitted a form to the U.S. Securities and Exchange Commission for the fund.
The world’s largest asset manager by assets under management has just submitted a form to the U.S. SEC for its initiative called the BlackRock USD Institutional Digital Liquidity Fund using Ethereum.
The fund is developed in partnership with Securitize, a San Francisco-based company, and it’s registered in the British Virgin Islands.
The details of the new fund are revealed in a new March 19 SEC filing, but the technical notes are still unclear. What we know so far is that on-chain data is showing that the fund is seeded with an initial capital of $100 million on the Ethereum blockchain.
The two companies involved in the creation of the fund have not made a public announcement yet.
On the other hand, Mike Novogratz, CEO of Galaxy Investment Partners, highlighted the importance of the move on his X account:
This feels very important for $Eth!!! https://t.co/UJVnIhm5pJ
— Mike Novogratz (@novogratz) March 19, 2024
Etherscan also revealed the creation of a token called BlackRock USD Institutional Digital Liquidity Fund (BUIDL), noting that a singular address is the holder of 100 BUIDL tokens issued on March 4.
The fund aggregates investments with a minimum entry of $100,000 needed for participation.
Rising interest in the tokenization of real-world assets
The latest move made by BlackRock mirrors the increasing interest in the tokenization of real-world assets.
The RWA is a sector that aims to combine the capabilities of digital assets with traditional finance in order to streamline the settlement process and, at the same time, boost transactional efficiency via blockchain tech.
Even though the RWAs’s market cap is down by about 2% in the past 24 hours, ONDO’s value surged substantially.
ONDO is the native token of Ondo Finance, the platform that makes possible the tokenization of real-world assets.
At the moment of writing this article, ONDO is trading at $0.53 on CoinMarketCap, up by 31.22% in the last 24 hours.
BlackRock’s spot Bitcoin ETF recently hit a new milestone, with IBIT recording the largest daily inflow and trading volume amidst tumultuous moves in the crypto market.