TL;DR
- BlackRock’s New Fund: BlackRock, the world’s largest asset manager, has announced the creation of a new fund, the “BlackRock USD Institutional Digital Liquidity Fund,” focused on the tokenization of real-world assets.
- Impact on the Crypto Market: Following the announcement, Ondo Finance’s native token ONDO saw a significant increase in value, jumping as much as 20%. Observers have pointed to blockchain data showing a movement of $100 million of Circle’s USDC stablecoin on the Ethereum network to an address related to a Securitize.
- BlackRock’s Vision for Tokenization: This development follows BlackRock’s previous ventures into digital asset funds, including a spot-based Bitcoin exchange-traded fund (ETF) and an application for an Ether spot ETF.
BlackRock, the world’s largest asset manager, has announced the creation of a new fund focused on the tokenization of real-world assets. The fund, named the “BlackRock USD Institutional Digital Liquidity Fund,” was revealed in a document filed with the U.S. Securities and Exchange Commission (SEC).
The fund will be launched in partnership with Securitize, a firm specializing in asset tokenization. While the filing does not specify the types of assets the fund will hold, the involvement of Securitize suggests a focus on the tokenization of real-world assets. This procedure entails the depiction of ownership for a diverse array of assets via a blockchain token.
The fund is incorporated in the British Virgin Islands and will accept a minimum investment of $100,000. The move is seen as a significant step towards increasing market accessibility and efficiency through the use of blockchain technology.
Larry Fink’s Vision for BlackRock: Embracing Tokenization
Following the announcement, Ondo Finance’s native token ONDO saw a significant increase in value, jumping as much as 20%. Observers have pointed to blockchain data showing a movement of $100 million of Circle’s USDC stablecoin on the Ethereum network to an address related to a Securitize deployer. This could potentially be a seed investment into the fund, although this is yet to be confirmed.
This development follows BlackRock’s previous ventures into digital asset funds. Earlier this year, the company listed a spot-based Bitcoin exchange-traded fund (ETF), which has since amassed over $15 billion of assets under management. BlackRock had also applied for an Ether spot ETF in the previous year.
BlackRock CEO Larry Fink has previously expressed his belief in the potential of tokenization. Back in January during an interview with CNBC, Fink noted that BTC and ETH ETFs “are just stepping stones towards tokenization and I really do believe this is where we’re going to be going”.
The tokenization of real-world assets is a growing sector at the intersection of digital assets and traditional finance. It offers the potential for faster settlements and increased efficiency. With BlackRock’s entry into this space, the future of asset tokenization looks promising.
