BlackRock’s first tokenized investment fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), saw a surge in inflows of approximately $160 million during its first week of operations. The fund’s growth trajectory continues with its recent investment in Ondo Finance, a tokenized real-world asset (RWA) platform.
BlackRock, the world’s largest asset manager, launched BUIDL last week, marking a significant entry into the realm of tokenized investment vehicles. The fund collected $160 million in deposits in its first week, according to a Bloomberg report. Ondo Finance also announced plans to allocate a significant portion of its tokenized short-term U.S. Treasury bond ETF, OUSG, to BUIDL. Ondo Finance told CoinDesk that it plans to transfer $95 million to the BUIDL platform, but it is unclear whether this amount is included in the $160 million total reported by BlackRock.
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) serves as a tokenized money market fund that primarily invests in U.S. Treasury securities, repurchase agreements, and cash. BUIDL tokens will be issued to investors utilizing the Ethereum blockchain infrastructure powered by Miami-based Securitize. The token is designed to maintain a stable value of $1 per token and distribute dividends to eligible investors in the form of tokens representing a U.S. dollar rate of return.
BlackRock’s foray into digital assets has been gaining momentum following its recent performance in the cryptocurrency space. In early January, BlackRock secured SEC approval for a spot Bitcoin exchange-traded fund (ETF), along with about a dozen other funds. BlackRock’s ETF product, iShares Bitcoin Trust (IBIT), has attracted more than $15 billion in investments, making it the second-largest spot Bitcoin ETF behind Grayscale’s GBTC, according to data from The Block’s Spot Bitcoin ETF Tracker. I ranked it.
BlackRock’s successful BUIDL debut highlights BlackRock’s commitment to embracing digital assets and highlights its growing influence in the evolving landscape of tokenized investment products.
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