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BlackRock to launch Tokenized Asset Fund. The fund will provide investors with their own identification number.
BlackRock Inc. is set to introduce a fund, in partnership with Securitize, a specialist in assets to explore opportunities for investing in blockchain technology. BlackRock is the latest major player on Wall Street to venture into this area.
BlackRock Submits the Filing
The largest asset management company globally has submitted a filing with the US Securities and Exchange Commission (SEC) outlining its plans to launch the “BlackRock USD Institutional Digital Liquidity Fund Ltd.” It is expected to be done in collaboration with Securitize, known for its expertise in tokenization of assets.
The filing indicates that external investors will need to commit $100,000 to participate. However, details about the fund are limited in the filing it’s worth noting that Securitize is already engaged with KKR, Hamilton Lane and other entities in developing funds. Recent findings by enthusiasts suggest an Ethereum blockchain-based digital wallet linked to the BlackRock fund.
Tokenization has emerged as an application of technology drawing interest from various financial institutions. Furthermore, industry leaders such as Brevan Howard and KKR have announced their intentions to tokenize segments of their funds. Citigroup projects that the tokenization market could reach $5 Trillion by 2030.
How the Fund Will be Tokenized?
The fund will be tokenized using an ERC 20 token named ‘BUIDL’ on the Ethereum blockchain. Currently, there is one holder of this token with an, on-chain market cap of $0 based on data. However, according to Etherscan, it was found that the fund received a $100 Million transfer, on March 4th.
The announcement of the fund comes as investors hope that a spot Ethereum ETF may be approved after the SEC approved 11 Bitcoin ETFs in January. In addition to this, BlackRock’s iShares Bitcoin Trust reached $1.3 Billion in shares after its launch in February.
BlackRock’s New Application
BlackRock registered an application with the SEC in February for an iShares Ethereum Trust, although the details are not yet clear. However, there is speculation surrounding the Institutional Digital Liquidity Fund. This speculation suggests that it is Ethereum-based, with stablecoin assets in the basket.
The CEO of BlackRock, Larry Fink, has been generally bullish about BTC. After the ETF approval, he told Bloomberg that he believed the next step forward was the tokenization of financial assets and that meant that every stock, every bond, and so on would be on one general ledger.
He further praised the customization strategies through tokenization and instantaneous settlement. Every investor would have their own number and identification. Moreover, Fink added that tokenization would help to get rid of all issues surrounding illicit activities about bonds and stocks and digital.
Summary
BlackRock, the world’s largest asset manager, plans to launch a digital liquidity fund in collaboration with Securitize. Tokenization of financial assets is a growing trend among institutions, with Citigroup estimating the market to reach $5 trillion by 2030.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of monetary loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
