21 Mar 2024
BlackRock has introduced its first tokenized fund on a public blockchain.
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which is using the Ethereum network, will be accessible to qualified investors through Securitize Markets.
BUIDL aims to offer a stable value of $1 per token and pays daily accrued dividends directly to investors' wallets as new tokens each month. It will invest 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain. Investors can transfer their tokens to other pre-approved investors. Fund participants will also have flexible custody options allowing them to choose how to hold their tokens.
BlackRock Financial Management will manage the fund, with Bank of New York Mellon as custodian and administrator while enabling interoperability for the fund between digital and traditional markets. Securitize will oversee tokenization and act as placement agent. PricewaterhouseCoopers will be the fund's auditor.
“Tokenization of securities could fundamentally transform capital markets. Today’s news demonstrates that traditional financial products are being made more accessible through digitization,” said Carlos Domingo, CEO and co-founder at Securitize.
BlackRock also announced that it has made an investment in Securitize. As part of the investment, Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, will sit on the Securitize board of directors.