BlackRock’s Groundbreaking Move: Introducing BUILD, the First Tokenized Fund on Ethereum Network
BlackRock, a global leader in investment management, took a significant leap forward today by introducing BUILD, its first tokenized fund on the Ethereum Network. The BlackRock USD Institutional Digital Liquidity Fund, also known as BUILD or the “Fund,” enables investors to earn interest in US dollars through Securitize Markets LLC.
Securitize Markets LLC, a pioneer in tokenizing real–world assets, facilitates an opportunity for investors to engage with digital tokenized assets via innovative blockchain technology projects. As part of BlackRock’s commitment to financial stability, the organization is collaborating and partnering with like-minded organizations like Securitize.io to address real–world challenges in the digital assets space.
Why is BlackRock so passionate about tokenizing digital assets?
BlackRock’s digital strategy is deeply focused on the tokenization of real–world assets. By providing powerful platforms for blockchain and crypto investors, the firm empowers them to generate investment returns through the BUILD token. Investors can benefit significantly by promoting trading and issuance of ownership on the platform.
The Fund offers several advantages: it broadens investor access to on-chain offerings, guarantees transparent and swift transaction and settlement times, and enhances interoperability by supporting cross-chain transfers. The rapid advancements in the industry have the potential to revolutionize traditional capital markets.
The BUILD fund operates as a stablecoin with a value of $1 for 1 BUILD token. Daily dividends generated by the Fund will be distributed to investor wallets, providing potential returns on investment.
How secure is BlackRock’s tokenized fund BUILD?
The Fund offers various options to investors, including the allocation of all assets into real–world assets like T-Bills, Repurchase agreements, and Cash. This setup allows investors to earn yield while holding BUILD tokens within the blockchain. The funds will be held by Bank of New York Mellon as the official custodian.
For liquidity purposes, investors can transfer their digital assets at any time to approved participants within the blockchain. The Fund also boasts endorsements from industry leaders such as BitGo, Coinbase, and Fireblocks. The fund will be managed by the experienced BlackRock Financial Management, Inc.
It’s crucial to note that proceeds earned from holding the BlackRock USD Institutional Fund are not registered by the SEC. Consequently, interests generated from staking BUILD may not be listed on any cryptocurrency exchange platform. Furthermore, there is a potential conflict of interest between BlackRock, Securitize Markets, and some project affiliates due to the profitable arrangement for all parties. Prospective investors are encouraged to conduct thorough due diligence before investing with caution.
