BlackRock Launches Tokenized Fund on Ethereum Network

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BlackRock, the world’s largest asset manager, has ventured into the realm of tokenized assets with the launch of its Digital Liquidity Fund. The fund, represented by the blockchain-based BUIDL token, has been filed with the United States Securities and Exchange Commission (SEC) under Form D. While the fund was created in 2023, its launch is pending. BlackRock aims to secure exemptions under the Investment Company Act Section 3(c) via this filing, allowing certain regulatory flexibilities.

With a minimum investment requirement of $100,000, the fund will be managed by Securitize, a U.S.-based digital asset securities firm. The tokenization will occur on the Ethereum blockchain utilizing the ERC-20 token standard, BUIDL. Despite its current single holder and zero on-chain market capitalization, the fund received a significant $100 million transfer on March 4, according to Etherscan.

As Robert Mitchnick, the head of digital assets, stated, BlackRock’s move into tokenization aligns with its broader digital assets strategy. BNY Mellon will handle the fund’s custody, while Securitize acts as a transfer agent and tokenization platform. BlackRock’s strategic investment in Securitize further solidifies its commitment to this space.

This development underscores the growing trend of traditional finance giants embracing blockchain technology and tokenization. As BlackRock CEO Larry Fink previously mentioned, the future of finance might entail the tokenization of all financial assets, facilitating transparency, efficiency, and accessibility across markets.

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