BlackRock has introduced its first tokenised fund on a public blockchain, marking a significant step in the institutionalisation of digital assets.
The BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, uses the Ethereum network and is accessible to qualified investors through Securitize Markets. The fund aims to maintain a stable value of $1 per token and pays daily accrued dividends directly to investors' wallets as new tokens each month.
BUIDL will invest 100% of its total assets in cash, US Treasury bills, and repurchase agreements, allowing investors to earn yield while holding the token on-chain. Investors can transfer tokens to other pre-approved investors and have flexible custody options.
BlackRock Financial Management will manage the fund, with Bank of New York Mellon as custodian and administrator. Securitize will oversee tokenisation and act as placement agent, while PricewaterhouseCoopers will serve as auditor. BlackRock has also made a strategic investment in Securitize as part of the arrangement.
Carlos Domingo, CEO and co-founder of Securitize, said the tokenisation of securities could fundamentally transform capital markets, with traditional financial products becoming more accessible through digitisation.