quick look:
- BlackRock's BUIDL fund raises £240m in a week.
- BUIDL aims to secure assets, leveraging Ethereum's blockchain.
- Ondo Finance boosts BUIDL with £95m investment.
In a recent pioneering development, BlackRock has entered the world of blockchain. With the launch of its tokenized fund BUIDL, it has achieved huge success, raising a staggering £240 million in deposits within just the first week of its launch. This remarkable achievement underscores the growing interest and trust in financial solutions based on blockchain technology.
BlackRock's proprietary tokenization solution
BUIDL, a unique offering from BlackRock, invests primarily in safe-haven assets. These include cash, US Treasury bills, and repurchase agreements. Thus, by issuing BUIDL tokens, linked to a fixed value of £1, the fund symbolizes ownership of shares in a new way.
Moreover, investors can transfer these tokenized shares between digital wallets. In addition, Securitise, a partner in this project, allows these transfers. Carlos Domingo, CEO of Securitise, highlights the broad benefit of the fund. Most importantly, it serves not only cryptocurrency companies, but also decentralized autonomous organizations (DAOs), which can manage their treasuries directly on the blockchain.
Moreover, BUIDL paves the way for cryptocurrency projects. Specifically, they can now create derivatives based on Treasury securities. This initiative provides a secure alternative to stablecoins for transactions and trading. Finally, Domingo emphasizes its institutional nature, managed by the world's largest asset manager, ensuring minimal risk to the counterparty.
Ondo Finance invests £95 million in BUIDL
The fund's potential has attracted significant investment from Ondo Finance. Nathan Allman, founder of the startup, has committed a whopping £95 million to BUIDL. This investment represents about 40% of the fund’s total deposits. Stock markets facilitate these token transfers, providing a powerful alternative to traditional transactions.
Despite the lack of regulatory clarity from the SEC regarding tokenization on the blockchain, the success of BUIDL indicates forward momentum. BlackRock CEO Larry Fink also highlighted the success of iShares Bitcoin Trust (IBIT). It has seen unprecedented growth, attracting £13.5 billion in just 11 weeks.
A pioneering step
BlackRock's entry into blockchain through BUIDL has already set a new precedent in the financial industry. By seamlessly integrating blockchain technology with traditional financial instruments, BlackRock demonstrates its innovative ability and commitment to providing secure and transparent financial solutions. Thanks to significant investments like those made by Ondo Finance, BUIDL is on its way to reshaping the asset management and investment landscape, bridging the gap between the traditional financial world and the burgeoning cryptocurrency and blockchain space.
