BlackRock launches its first tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), accessible via Securitize Markets, LLC. Robert Mitchnick, BlackRock’s Digital Assets Head, said that the move aligns with the firm’s digital assets strategy, focusing on solving client challenges.
Through BUIDL, investors gain access to on-chain offerings with transparent settlement facilitated by blockchain technology. BNY Mellon can enable transactions between digital and traditional markets.BUIDL issues its token with a fixed value of $1, which pays out every day in the form of dividends to the investors’ digital wallets.
The fund focuses on investments in cash, U.S. Treasury bills, and repurchase agreements that provide for the generation of yield with the tokens being held on the blockchain. Investors can send tokens anytime, all year round, with customized custody choices. An instance is Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks joined the initial ecosystem partners.
Black Rock Financial Management I.C. is responsible for fund administration, with Bank of New York Mellon as the trustee. It functions as a transfer agent and tokenization platform for Securitize, ensuring concurrent subscriptions, redemptions, and distributions.
PricewaterhouseCoopers LLP is the auditor listed in the fund prospectus (PricewaterhouseCoopers LLP 2020).
BUIDL’s shares are traded under Rule 506(c) and Section 3 (c)(7), with a large starting share value of $5 million. Joseph Chalom, the managing director at Securitize, was reappointed to BlackRock’s board of directors.
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