Key facts: Only pre-approved investors will be able to access the BUIDL token. Coinbase, Securitize, BitGo and other renowned companies participate in this launch. BlackRock, the world's largest financial asset management company, introduces BUIDL. This is the acronym for “BlackRock USD Institutional Digital Liquidity”. It's about a investment fund that has the characteristic of being tokenized on the Ethereum network. The objective of this fund is to “provide qualified investors with the opportunity to earn returns in US dollars” The launch It is carried out in conjunction with Securitize, a company specialized in tokenization. BlackRock's head of digital assets said: «This is the latest progression of our digital asset strategy.»
Why will this investment fund be tokenized?
Because this fund is tokenized (that is, represented by an ERC-20 token that «lives» on Ethereum), Negotiation and issuance can be done directly on the cryptocurrency network.
In the words of BlackRock, “this will expand investor access to on-chain offerings, providing instant and transparent settlements and allowing transfers between platforms.” He clarifies the company that «the BNY Mellon bank will allow the interoperability of the Fund between digital and traditional markets.» Carlos Domingo, co-founder and executive director of Securitize, spoke about this development:
«Tokenization of securities could fundamentally transform capital markets. Today's news shows that traditional financial products are becoming more accessible thanks to digitalization. “Securitize is proud to be BlackRock’s preferred transfer agent, tokenization platform and placement agent to digitize and expand access to its investment products.” Carlos Domingo, co-founder of Securitize.
How will BUIDL work?
The BUIDL token will resemble a stablecoin. BlackRock explains that BUIDL «seeks to offer a stable value of $1 per token and pays accumulated dividends daily directly to investors' wallets as new tokens each month.» Those who acquire BUIDL, indirectly they will be investing in cash, US Treasury bills and repurchase agreements. Tokens (as with any cryptocurrency or digital asset) can be transferred 24/7, including holidays. But, BlackRock clarifies that Only “pre-approved investors” will be able to receive this token.». Initial ecosystem participants in BUIDL include Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks, among others. Although BlackRock will be the administrator, the aforementioned bank BNY Mellon will be the custodian of the fund's assets. It is necessary to clarify, as BitcoinDynamic reported this morning, that at the moment The fund is in the analysis stage by the US Securities and Exchange Commission (SEC).. We will have to wait for the regulator to issue its approval verdict so that BUIDL can begin trading.