Summary
BlackRock announced its tokenized asset fund, ‘BUIDL,’ built on Ethereum network with a $5 million initial investment minimum. The fund bridges Ethereum and traditional markets with Bank of New York Mellon as custodian and Securitize as transfer agent. Approval for a spot Ethereum ETF is uncertain, but BlackRock’s move has sparked optimism in the market.
Key Points
1. BlackRock’s tokenized asset fund, named ‘BUIDL,’ will be built on the Ethereum network, marking the company’s first tokenized fund issued on a public blockchain.
2. The BlackRock USD Institutional Digital Liquidity Fund was first registered in the British Virgin Islands last year and will offer investors benefits such as enabling issuance and trading of ownership on a blockchain, expanding investor access to on-chain offerings, providing instantaneous and transparent settlement, and allowing for transfers across platforms.
3. BlackRock has enlisted Bank of New York Mellon as the custodian of the Fund’s assets and its administrator, as well as Securitize Markets, LLC, an SEC registered transfer agent, to bridge between Ethereum and traditional markets.