BlackRock, a global investment management firm, has unveiled its first tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), on the Ethereum blockchain. Qualified investors can participate through Securitize Markets, LLC.
Robert Mitchnick, BlackRock’s Head of Digital Assets, views BUIDL as a strategic advancement in their digital assets strategy, aiming to address client needs in the digital space. Tokenization is central to this strategy, enabling transparent ownership transfer and expanded access to on-chain offerings.
Securitize, serving as BlackRock's transfer agent and tokenization platform, sees this initiative as transformative for capital markets. BUIDL aims to maintain a stable value of $1 per token and offers daily dividends to investors' wallets. The fund invests in cash, U.S. Treasury bills, and repurchase agreements, providing yield opportunities while tokens are held on the blockchain.
Key ecosystem participants include Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks, alongside other industry players.
BlackRock Financial Management, Inc., will manage the Fund, with Bank of New York Mellon as custodian and administrator. Securitize will handle tokenized shares and facilitate investor access through Securitize Markets. PricewaterhouseCoopers LLP will audit the Fund.
BUIDL operates within regulatory frameworks, issuing shares under relevant securities laws, with an initial investment minimum of $5 million.
In a strategic move, BlackRock has invested in Securitize, with Joseph Chalom, BlackRock’s Global Head of Strategic Ecosystem Partnerships, joining Securitize’s Board of Directors.
