Hassan Maishera
TL;DR
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BlackRock has launched its asset tokenization fund on the Ethereum blockchain.
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The asset management firm also made a strategic investment in Securitize.
BlackRock Enters the Asset Tokenization Space
BlackRock, the world’s largest asset management firm, unveiled its tokenized asset fund on the Ethereum network on Wednesday. Dubbed the BlackRock USD Institutional Digital Liquidity Fund, the fund is represented by the blockchain-based BUIDL token, is fully backed by cash, U.S. Treasury bills, and repurchase agreements.
The fund will also provide yield paid out via blockchain rails every day to token holders, according to a press release.
According to BlackRock, Securitize will serve as a transfer agent and tokenization platform, while BNY Mellon is the custodian of the fund's assets. BlackRock added that Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks also participate in how the fund operates.
The asset management firm also made a strategic investment in Securitize but didn’t disclose the terms of the investment. While commenting on this latest development, Robert Mitchnick, BlackRock’s Head of Digital Assets, said,
"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."
BlackRock has become the latest traditional financial giant to enter the tokenization ecosystem. Citi, Franklin Templeton and JPMorgan are all active participants in this ecosystem.
Real-world asset tokenization (RWA) is gaining popularity as it allows companies to create blockchain-based tokens of traditional investments such as bonds and funds. The launch of its asset tokenization fund might just be the first step as BlackRock CEO Larry Fink said earlier this year that the company's spot BTC ETF paves the way towards tokenization.
