How BlackRock’s Launch Of A Yield-Bearing Stablecoin On Ethereum Is A Game-Changer
World’s largest asset manager BlackRock announced the official launch of the tokenized asset fund on the Ethereum blockchain network, a day after submitting its filing to the U.S. SEC. To launch this fund, BlackRock partnered with digital assets specialist Securitize Markets.
BlackRock Fund Backed By BUIDL Token
The BlackRock USD Institutional Digital Liquidity Fund, represented by the blockchain-based BUIDL token, is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements. Yield generated from the fund will be distributed daily to token holders via blockchain channels, as per a press release.
Securitize will serve as the transfer agent and tokenization platform for the fund, with BNY Mellon acting as the custodian of its assets, as announced by BlackRock. Additionally, BitGo, Anchorage Digital Bank NA, Coinbase, and Fireblocks are among the participants in the fund’s ecosystem.
This partnership reflects our commitment to connecting institutions to crypto and demonstrates our ability to provide the necessary technology and products to support the rapidly growing tokenization sector.
Read more here: https://t.co/Z4d0ZA5N4B
— Coinbase Institutional
(@CoinbaseInsto) March 20, 2024
The recent announcement of BlackRock’s foray into the realm of yield-bearing stablecoins on the Ethereum blockchain has stirred significant excitement within the crypto community. Regarded as one of the most bullish developments in the crypto sphere, this initiative represents a notable step towards mainstream adoption of digital assets.
On one hand, the U.S. Securities and Exchange Commission (SEC) has been pushing back on the approval of Ethereum ETF. On the other hand, BlackRock filed for a Ethereum Exchange-Traded Fund (ETF), indicating a substantial interest in providing investment opportunities linked to the second-largest cryptocurrency by market capitalization.
The Ethereum (ETH) price is already up 12% in the last 12 hours shooting all the way past $3,500 backed by dovish Fed commentary.
The press release further mentioned that BlackRock made a “strategic investment” in Securitize, however, the firm didn’t release specific details regarding the terms of the agreement. Robert Mitchnick, BlackRock’s Head of Digital Assets, said:
“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.”
More Details of the BUIDL Token
The BUIDL token came into existence on March 4, 2024, with all 100 BUIDL tokens initially residing in a single address. Moreover, as outlined in the fund’s prospectus, investors need to commit a minimum of $100,000.
Functioning akin to a short-term money market fund, it primarily targets investments in short-duration securities such as commercial paper, certificates of deposit, and floating rate notes, with a significant portion of its asset allocation dedicated to cash reserves
The post How BlackRock’s Launch Of A Yield-Bearing Stablecoin On Ethereum Is A Game-Changer appeared first on CoinGape.
Read More
How BlackRock’s Launch Of A Yield-Bearing Stablecoin On Ethereum Is A Game-Changer
World’s largest asset manager BlackRock announced the official launch of the tokenized asset fund on the Ethereum blockchain network, a day after submitting its filing to the U.S. SEC. To launch this fund, BlackRock partnered with digital assets specialist Securitize Markets.
BlackRock Fund Backed By BUIDL Token
The BlackRock USD Institutional Digital Liquidity Fund, represented by the blockchain-based BUIDL token, is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements. Yield generated from the fund will be distributed daily to token holders via blockchain channels, as per a press release.
Securitize will serve as the transfer agent and tokenization platform for the fund, with BNY Mellon acting as the custodian of its assets, as announced by BlackRock. Additionally, BitGo, Anchorage Digital Bank NA, Coinbase, and Fireblocks are among the participants in the fund’s ecosystem.
This partnership reflects our commitment to connecting institutions to crypto and demonstrates our ability to provide the necessary technology and products to support the rapidly growing tokenization sector.
Read more here: https://t.co/Z4d0ZA5N4B
— Coinbase Institutional
The recent announcement of BlackRock’s foray into the realm of yield-bearing stablecoins on the Ethereum blockchain has stirred significant excitement within the crypto community. Regarded as one of the most bullish developments in the crypto sphere, this initiative represents a notable step towards mainstream adoption of digital assets.
On one hand, the U.S. Securities and Exchange Commission (SEC) has been pushing back on the approval of Ethereum ETF. On the other hand, BlackRock filed for a Ethereum Exchange-Traded Fund (ETF), indicating a substantial interest in providing investment opportunities linked to the second-largest cryptocurrency by market capitalization.
The Ethereum (ETH) price is already up 12% in the last 12 hours shooting all the way past $3,500 backed by dovish Fed commentary.
The press release further mentioned that BlackRock made a “strategic investment” in Securitize, however, the firm didn’t release specific details regarding the terms of the agreement. Robert Mitchnick, BlackRock’s Head of Digital Assets, said:
“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.”
More Details of the BUIDL Token
The BUIDL token came into existence on March 4, 2024, with all 100 BUIDL tokens initially residing in a single address. Moreover, as outlined in the fund’s prospectus, investors need to commit a minimum of $100,000.
Functioning akin to a short-term money market fund, it primarily targets investments in short-duration securities such as commercial paper, certificates of deposit, and floating rate notes, with a significant portion of its asset allocation dedicated to cash reserves
The post How BlackRock’s Launch Of A Yield-Bearing Stablecoin On Ethereum Is A Game-Changer appeared first on CoinGape.
Read More