BlackRock, one of the world’s largest asset managers, has witnessed remarkable success with its recently launched tokenized money market fund, RAMP UP. The fund, which registers shared ownership on the Ethereum (ETH) blockchain, has attracted more than $160 million in just one week since its debut.
BlackRock BUIDL Fund
According to a Bloomberg report, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) invests primarily in cash, U.S. Treasury securities and repurchase agreements. The fund rewards its holders with a cryptocurrency, BUIDL, valued at $1 per token.
Shareholders can transfer these tokens to other validated addresses using digital wallets approved by Securitize, BlackRock’s investment vehicle partner. The tokenized fund serves several important use cases, including treasury management for crypto companies, support for Treasury bond derivatives and act as collateral for loans and trades, thus providing an alternative to stablecoins.
It is important to note that Securitize Markets, an alternative trading system registered with the SEC, plays a key role in facilitating the transfer of tokens between market participants.
Although the SEC has recently increased its scrutiny of Ethereum’s native token, ETH, Securitize CEO Carlos Domingo emphasizes that investigations must be separated from the underlying blockchain infrastructure. Domingo also highlights the battle-tested nature of the public Ethereum blockchain, which provides a “robust foundation” for tokenization activities.
As previously reported Through our sister site, Bitcoinist, BlackRock has emerged as an advocate for cryptocurrencies and tokenization at major financial institutions. President and CEO Larry Fink believes that all financial assets will eventually be tokenized.
The company iShares Bitcoin Trust (IBIT) has attracted more than $13 billion in inflows since its launch as an exchange-traded fund (ETF) in January. With the launch of the BUIDL fund, BlackRock continues to demonstrate its willingness to explore new digital asset solutions.
Ondo Finance will transfer US$95 million in assets to BlackRock
Ondo Finance, a platform specializing in real-world tokenized assets (RWA), has moved $95 million in assets for BlackRock’s BUIDL fund. This strategic move allows Ondo Finance to facilitate instant settlements for its US Treasury-backed token, OUSG.
This makes Ondo Finance a key player in the BUIDL ecosystem. According to network researcher Tom Wan, currently holds $15 million in BUIDL tokenswhich, in addition to those above $95 million, will result in a substantial $110 million worth of BUIDL tokens.
The researcher noted that this collaboration further strengthens the US Treasury tokenized market, with the potential to reach $1 billion in value. In their announcement, the team behind the Ondo Finance platform summarized:
We are excited to see BlackRock embracing security tokenization with the launch of BUIDL, especially its extensive cooperation with ecosystem participants. This not only further validates our original concept of a tokenized US Treasury fund, but also reinforces our thesis that the tokenization of traditional securities on public blockchains represents the next major step in the evolution of financial markets.
At the time of writing, Ondo Finance’s native token, ONDO, is trading at $0.909, showing an increase of over 4% in the last 24 hours. This positive momentum adds to the impressive 115% price uptrend recorded over the last 30 days.
Featured image from Shutterstock, chart from TradingView.com
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