Blackrock Tokenized Fund Has Launch, It's Called $BUIDL
BlackRock, one of the world's largest asset management companies with $10 trillion in assets under management, has introduced its first tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund was formed in collaboration with Securitize, a company focused on tokenizing assets.
This step marks the presence of major and reputable companies like BlackRock in the development of the digital asset market. It brings significant potential for the adoption of crypto assets and real-world assets (RWA).
RWA Tokenization
RWA Tokenization is the process of transforming ownership of real-world assets into digital tokens using blockchain technology. This innovation allows investments to become more democratic by fractionalizing assets such as real estate, commodities, and even stocks into tradeable tokens.
The growing interest in the RWA sector has received an unprecedented boost with the launch of the BlackRock USD Institutional Digital Liquidity Fund on the Ethereum blockchain.
This process involves placing traditional assets on the blockchain network to achieve faster transaction settlements and higher efficiency. Tokenizing real-world assets offers various benefits, such as increased liquidity, transparency, and security.
With this initiative, BlackRock has positioned itself as a leader at the forefront of integrating digital assets with traditional financial services. This has the potential to spur a new trend among investors to allocate more to blockchain assets.
Benefits for Investors
The BUIDL fund offers unprecedented access for investors to participate in investments managed by BlackRock, with transparent settlements facilitated by blockchain technology.
Through BUIDL, investors can obtain tokens equivalent to $1 each, with daily dividend payments sent directly to their digital wallets.
The tokenization process transforms the assets in the fund into digital tokens, allowing investors to participate in BlackRock-managed investments in an efficient and decentralized manner.
With the support of major companies like BlackRock, the trend of tokenizing real-world assets is expected to continue growing and evolving in the coming years.
Impact on the Crypto Market
Following the announcement of the launch of the BUIDL fund by BlackRock, the crypto market responded positively. This resulted in a surge in prices for several RWA-related crypto assets, For instance, Ondo Finance token $ONDO, soared by 20% after the announcement and increased by 38% in the last 24 hours.
This indicates that the announcement not only had a direct impact on the crypto asset market but also elicited positive reactions from investors and market participants.
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