-
BlackRock
to
start
a
new
real-world
asset
(RWA)
tokenization
fund
on
the
Ethereum
network. -
The
asset
management
giant
also
made
strategic
investments
in
asset
tokenization
company
Securitize.
Asset
management
giant
BlackRock
(BLK)
officially
unveiled
its
tokenized
asset
fund
on
the
Ethereum
network
on
Wednesday.
The
BlackRock
USD
Institutional
Digital
Liquidity
Fund
is
represented
by
the
blockchain-based
BUIDL
token,
is
fully
backed
by
cash,
U.S.
Treasury
bills,
and
repurchase
agreements,
and
will
provide
yield
paid
out
via
blockchain
rails
every
day
to
token
holders,
according
to
a
press
release.
Securitize
will
act
as
a
transfer
agent
and
tokenization
platform,
while
BNY
Mellon
is
the
custodian
of
the
fund’s
assets,
BlackRock
said.
Anchorage
Digital
Bank
NA,
BitGo,
Coinbase,
and
Fireblocks
also
participate
in
the
fund’s
ecosystem.
BlackRock
also
made
a
“strategic
investment”
in
Securitize,
the
press
release
added,
but
the
terms
of
the
deal
weren’t
disclosed.
“This
is
the
latest
progression
of
our
digital
assets
strategy,”
said
Robert
Mitchnick,
BlackRock’s
Head
of
Digital
Assets.
“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.”
The
announcement
came
after
a
regulatory
filing
revealed
that
BlackRock
incorporated
a
fund
with
Securitize,
spurring
speculations
of
a
tokenized
fund
as
observers
pointed
to
blockchain
transactions
to
seed
the
vehicle,
CoinDesk
reported
Tuesday.
BlackRock
is
the
latest
traditional
finance
giant
to
enter
the
tokenization
field
after
Citi,
Franklin
Templeton
and
JPMorgan
have
already
made
headways
with
the
technology.
Creating
blockchain-based
tokens
of
traditional
investments
such
as
bonds
and
funds
–
known
as
tokenization
of
real-world
assets
(RWA)
–
is
a
fast-growing
use
case
for
blockchains
as
digital
assets
and
traditional
finance
(TradFi)
are
becoming
more
intertwined.
Tokenized
U.S.
Treasuries,
for
example,
have
grown
to
$730
million
from
$100
million
in
early
2023
as
crypto
firms
seek
to
earn
a
steady
yield
by
parking
their
on-chain
funds.
BlackRock
CEO
Larry
Fink
said
earlier
this
year
in
a
CNBC
interview
that
the
company’s
spot
BTC
ETF
was
“stepping
stones
towards
tokenization.”