BlackRock has made a significant move in the tokenization space, allowing qualified institutions to convert their USDC holdings to U.S. dollars and invest in its USD Institutional Digital Liquidity Fund (BUIDL). The conversion process is facilitated through Securitize’s integration with Zero Hash, a crypto and stablecoin infrastructure platform. This integration marks an important step in simplifying access to crypto assets for institutions as it streamlines the investment process into BlackRock’s BUIDL fund.
USDC Purchases for BlackRock’s BUIDL Fund
The fund, which entered the market in March 2024, has quickly risen in prominence. With $550 million in assets under management (AUM) as of October 15, 2024, BUIDL is now the largest tokenized fund in the world. It provides a transparent, efficient, and on-chain investment option for qualified institutions looking to earn yields in U.S. dollars.
Moreover, BUIDL’s assets are fully invested in cash, U.S. Treasury bills, and repurchase agreements, allowing for stability while offering investors daily-accrued dividends. Therefore, Carlos Domingo, co-founder and CEO of Securitize, emphasized the demand for a seamless digital process.
“The introduction of the integration feature between USDC to USD to allow investors to subscribe into BUIDL has been in high demand since the launch, and we expect this will further accelerate adoption of the fund,” Domingo noted in an announcement.
Securitize has been driving the digitization of capital markets, using tokenization to create more accessible and efficient financial ecosystems. Thus, Domingo added that their goal is to provide a smooth on-chain transaction process. This ensures that investors stay within the blockchain ecosystem throughout the entire investment cycle.
About BUIDL Fund
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The BUIDL fund represents BlackRock’s first tokenized fund to be issued on a public blockchain, a pioneering step for the traditional finance giant. Typically, investments in stable, high-quality financial products have been offered through traditional financial channels, making it difficult for Web3 firms to access them.
However, with the creation of BUIDL, institutions can now seamlessly subscribe using USDC, staying fully on-chain from investment to settlement. Furthermore, Zero Hash plays a critical role in this infrastructure by converting USDC to U.S. dollars, allowing institutions to easily invest in BUIDL while remaining within the crypto asset space.
Also, investors using USDC can enjoy near-instant settlement, transparent ownership tracking, and on-chain transfers across platforms. This not only streamlines the process but also broadens access to BlackRock’s offering, particularly for firms native to the Web3 space.
Moreover, qualified institutions interested in taking part in this opportunity can learn more by visiting Securitize’s website and initiating the investment process. BlackRock’s move toward tokenized assets is seen as a major leap forward in the digitization of capital markets amid the launch of the asset manager’s spot Bitcoin and Ethereum ETFs.
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