BlackRock BUIDL Tokenized Fund Nearing $500M Milestone

UTC by Godfrey Benjamin · 3 min read
BlackRock BUIDL Tokenized Fund Nearing $500M Milestone
Photo: Depositphotos

Through BUIDL, BlackRock has strengthened its entry into the digital asset industry.

Leon Waidmann, an analyst from BTC-Echo has highlighted the growth of BUIDL from BlackRock Inc (NYSE: BLK). He referenced an earlier post from blockchain analytics platform IntoTheBlock, emphasizing that the tokenization solution is gradually nearing a $500 million milestone. This comes barely four months after the fund was launched.

BlackRock’s Tokenization Fund with Securitize

IntoTheBlock data revealed that BUIDL now holds up to $491 million in Assets Under Management (AUM) amid a sustained growth trajectory. This milestone comes as the broader crypto market is bleeding from the liquidation of several digital currencies. As of July 2, BUIDL’s AUM comes in at $486.46 million but recently increased to $491.83 million, according to recent data.

In March, BlackRock unveiled its first tokenized fund issued on a public blockchain in collaboration with Securitize. The fund was designed to provide qualified investors with the opportunity to earn United States dollar yields by subscribing to the Fund through Securitize Markets, LLC. Precisely, it aims to offer a stable value of $1 per token for investors. These daily accrued dividends are then paid directly to investors’ wallets as new tokens each month

It could also enable the issuance and trading of ownership on a blockchain and expand investor access to on-chain offerings. It affords investors instant and transparent settlement and allows for transfers across various platforms. Financial institution BNY Mellon also plays the role of enabling interoperability for the BUIDL fund between digital and traditional markets.

Through BUIDL, BlackRock has strengthened its entry into the digital asset industry. Noteworthy, BlackRock had just entered the crypto ecosystem with the launch of a spot Bitcoin ETF at the time of BUIDL’s launch. Speaking of the launch of the BUIDL fund, Robert Mitchnick, BlackRock’s Head of Digital Assets, confirmed it was part of its new crypto strategy.

“This is the latest progression of our digital assets strategy. We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize,” Mitchnick said.

BlackRock BUIDL Sees Mass Adoption

At the core of this BlackRock strategy is the concept of tokenization. Notably, this gave rise to its partnership with Securitize. One month after it was introduced, BUIDL successfully bagged the position of largest tokenized treasury fund. It overtook the likes of Franklin Templeton.

This was after it registered inflows of $70 million in a week and hit $375 million in deposits.

The short-time surge could be attributed to several events including the weight of adoption that BlackRock’s BUIDL has seen. Recently, brokerage firm Hidden Road accepted the BUIDL token as collateral across its network, thereby expanding its use and popularity. So far, BUIDL has proven that it is commanding a reasonable level of investors’ interest in the market.

Funds & ETFs, Market News, News
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