BlackRock launches tokenized fund BUIDL on Ethereum and strategically invests in Securitize

The world's largest asset management company BlackRock announced the official launch of its first tokenized fund on the public Ethereum blockchain—BlackRock Institutional Dollar Digital Liquidity Fund (BUIDL). BUIDL will be subscribed through Securitize Markets, LLC, providing accredited investors with the opportunity to earn USD returns.

Coin-Type Fund BUIDL Launched on Ethereum

Robert Mitchnick, head of digital assets at BlackRock, stated that tokenization is a key focus of BlackRock's digital asset strategy. Through the tokenization of funds, BUIDL will facilitate ownership issuance and trading on the blockchain, expand investor access to on-chain products, provide real-time and transparent settlement, and enable cross-platform transfers. The New York Mellon Bank will facilitate interoperability between the digital and traditional markets for this fund.

BUIDL aims to provide a stable value of $1 per token and will distribute daily accrued dividends as new tokens directly to investors' wallets each month. The fund will invest 100% of its assets in cash, US Treasury bonds, and repurchase agreements, allowing investors to earn returns while holding tokens on the blockchain. Investors can transfer their tokens to other pre-approved investors 24/7/365. Fund participants will also have flexible custody options, allowing them to choose how to hold the tokens.

Participation of Coinbase and Other Crypto Companies in Its Ecosystem

The initial ecosystem participants of BUIDL include Anchorage Digital Bank NA, BitGo, Coinbase, Fireblocks, and other market participants and infrastructure providers in the crypto industry.

BlackRock Financial Management will serve as the fund's investment manager, New York Mellon Bank as the custodian and administrator of the fund's assets. Securitize will act as the transfer agent and tokenization platform, managing tokenized stocks and reporting fund subscriptions, redemptions, and distributions. Securitize Markets will act as the placement agent, offering the fund to qualified investors. PricewaterhouseCoopers LLP has been appointed as the fund's auditor until December 31, 2024.

BlackRock's Strategic Investment in Securitize

BlackRock has also made a strategic investment in Securitize. As part of the investment, Joseph Chalom, Head of Global Strategy Ecosystem Collaboration at BlackRock, has been appointed as a member of Securitize's board of directors.

Founded in 2017, Securitize is a blockchain company specializing in tokenizing real-world assets (RWA) and obtained SEC transfer agency registration in July 2019. In 2022, Securitize provided tokenized investment funds for KKR funds in the US and tokenization channels for Hamilton Lane's private credit funds in 2023, available to qualified investors using the Polygon blockchain.