TL;DR
- Injective has launched the first tokenized index for BlackRock’s BUIDL Fund, offering a new level of transparency and accessibility in DeFi.
- The BUIDL Fund provides institutional investors with access to yields on assets like U.S. treasuries, maintaining a stable value of $1 and offering daily accruing dividends.
- The BUIDL Index tracks the supply of the BUIDL Fund, allowing 24/7 access to tokenized assets with leverage, and is exclusively accessible through Injective’s dApps like Helix.
Injective has launched the world’s first tokenized index for BlackRock’s BUIDL Fund, marking a significant milestone in the realm of DeFi. This innovative index allows users to access the BUIDL Fund through on-chain financial instruments, offering a new level of transparency and accessibility.
1/10 Injective is introducing the first ever tokenized index for @BlackRock’s BUIDL Fund, a perpetual index product that tracks the supply of the $BUIDL fund itself.
Now users can access the fund with the lowest fees and fastest speeds in crypto.https://t.co/jAupnilJ3b
— Injective 🥷 (@injective) September 4, 2024
The BUIDL Fund, also known as the BlackRock USD Institutional Digital Liquidity Fund, is BlackRock’s first tokenized fund issued on a public blockchain. It provides institutional investors with access to yields on assets such as U.S. treasuries.
Each BUIDL token maintains a stable value of $1 and offers daily accruing dividends paid monthly. The fund’s assets include cash, U.S. treasury bills, and repurchase agreements, with over $500 million in assets under management.
How the BUIDL Index Works
The BUIDL Index is a perpetual market that tracks the supply of the BUIDL Fund, rather than just its price. This unique approach allows users to gain 24/7 access to tokenized assets with leverage.
The index was developed in collaboration with Stork, a decentralized price feed provider, ensuring data accuracy and availability at the millisecond level. As the supply of BUIDL tokens increases, the index price rises, and vice versa, enabling traders to take long or short positions based on market trends.
Exclusive Access via Injective
The BUIDL Index is exclusively accessible through various dApps on the Injective blockchain, such as Helix. This platform offers the lowest fees and fastest speeds in the crypto space, making it an attractive option for traders.
The launch of this index is part of Injective’s broader Altaris Mainnet upgrade, which includes an advanced Oracle network to support tokenized asset offerings.
Implications for the Crypto Market
The introduction of the BUIDL Index is a significant development for the crypto market, reflecting growing institutional interest in tokenized assets.
By providing a transparent and efficient way to track the supply of the BUIDL Fund, Injective is setting a new standard for DeFi platforms. This move is expected to attract more institutional investors to the crypto space, further bridging the gap between traditional finance and blockchain technology.
