BlackRock and other Big Players Implementing Tokenization
BlackRock has launched BUIDL, its first public blockchain-based tokenized fund, designed to offer U.S. dollar yields to qualified investors through Securitize Markets. Highlighting a commitment to digital assets, this fund allows for blockchain-based issuance, trading, and cross-platform transfers with enhanced accessibility and efficiency. The fund aims for a stable token value and invests in secure assets, facilitating 24/7 investor token transfers with flexible custody.
Initial partners include Anchorage Digital Bank, BitGo, Coinbase, and Fireblocks, BlackRock Financial Management, Inc., will be the investment manager of the Fund and Bank of New York Mellon will serve as the custodian of the Fund’s assets and its administrator.
BUIDL aims to maintain each token's value at $1, distributing monthly dividends directly to investors' digital wallets. It fully allocates its assets to cash, U.S. Treasury bills, and repurchase agreements, offering yields while investors hold the token. The fund permits 24/7 token transfers among vetted investors and provides them with various custody choices for their tokens.
This developments aligns with a recent FT article highlighting how Blockchain technology facilitates a selective network access mainly for a bank's clients, allowing them to engage in trading tokenized assets with transparency and efficiency. JPMorgan Chase, as a prime example, manages significant daily transactions through its Onyx Digital Assets platform. The system's complexity addresses challenges in margin and collateral management, with tokenized assets enabling secure loans and repurchase agreements, thereby enhancing liquidity and operational efficiency in financial transactions. This approach not only meets regulatory requirements but also streamlines the borrowing process, showcasing blockchain's potential to revolutionize financial markets.
Sources
https://www.ft.com/content/fa673b94-7f7b-45a2-8754-6a83619ed6e1?utm_source=pocket_reader
