BUIDL – BlackRock launches its first tokenized fund

If anyone had any doubts whether the global giant, the BlackRock fund, is seriously starting to invest in blockchain technology and the world of cryptocurrencies, they have now been dispelled. BlackRock not only launched a new fund online Ethereum, but also made a strategic investment in Securitize, a company dealing with tokenization of assets. It will pay dividends to investors daily.

BlackRock (BLK) has already officially presented its tokenized asset fund on the Ethereum network. Thanks to this, we know that the BlackRock USD Institutional Digital Liquidity Fund is represented by a token BUIDL blockchain-based. It is fully collateralized by cash, as well as U.S. Treasury bills and repurchase agreements. Moreover, it provides income that will be paid daily to all token holders.

BlackRock: We solve real problems for our customers

The press release added that BlackRock also made a "strategic investment" in Securitize, which will act as a transfer agent and tokenization platform, but terms of the transaction were not disclosed.

– This is a great advancement in our digital assets strategy - said Robert Mitchnick, BlackRock's chief digital officer. – We are focused on developing digital asset solutions that help solve real problems for our customers and are excited to partner with Securitize - added.

So far, BlackRock has been quite reserved in reporting on its investment strategies. In fact, he only did it when he really had to, because legal or regulatory issues required it. That was the case this time too. The information was made public after the regulatory application was submitted and it was known that BlackRock had merged the fund with Securitize.

Another giant of traditional finance is investing in the world of cryptocurrencies

BlackRock is not the first giant from the world of traditional finance to enter the field of tokenization. This was previously done by such well-known companies as Citi, franklin templeton or JP Morgan.

The world of banking is increasingly based on blockchain technology tokens for traditional investments such as bonds and funds. Thus, tokenization of real-world assets (RWA) is currently one of the fastest-growing blockchain markets as digital assets and traditional finance become increasingly intertwined.

The best example is tokenized US Treasuries, which rose in value from $100 million to $730 million in early 2023 as crypto companies seek to make a consistent profit by investing their funds in them on the same blockchain.

What is BlackRock? They can buy the whole of Poland

BlackRock is an American investment company headquartered in New York but operating around the world. In January 2022, it was recognized as the largest asset management company in the world. Their valuation reached USD 10 trillion, or approximately PLN 40 trillion - 46 times more than Poland's budget for 2024.

Together with the fund Vanguard and investment firm State Street, BlackRock is considered one of the three largest index fund managers that dominate globally.

BlackRock has been criticized for years because it does not shy away from investing in controversial countries if it can earn good money from it. He invests a lot, among others: in China or third world countries.