BlackRock’s BUIDL Fund Making Waves in the Crypto Space 🌊
BlackRock’s venture into blockchain with its tokenized fund BUIDL has gained significant traction, attracting $240 million in deposits. The fund, leveraging the Ethereum blockchain to record share ownership, achieved this milestone in just one week after its launch.
Exploring BlackRock’s Innovative Tokenization Solution 🚀
– BUIDL focuses on investing in secure assets like cash, US Treasury bills, and repurchase agreements, offering investors BUIDL tokens pegged at a stable value of $1 to represent their share ownership.
– The fund allows for tokenized shares to be transferred between authorized digital wallets in collaboration with Securitize, BlackRock’s partner in the venture.
– Carlos Domingo, CEO of Securitize, emphasizes the fund’s versatility, catering to crypto companies and decentralized autonomous organizations (DAOs) seeking to manage their treasuries directly on the blockchain.
Ondo Finance’s Substantial Investment in BUIDL 💰
– Nathan Allman, founder of Ondo Finance, disclosed that the company has dedicated $95 million to invest in BlackRock’s BUIDL fund, constituting approximately 40% of the total deposits.
– Registered with the Securities and Exchange Commission (SEC) and holding a FINRA broker-dealer license, Securitize Markets facilitates token transfers among clients as an alternative solution.
– Domingo highlighted the SEC’s ambiguous regulatory stance, noting the lack of guidelines on whether tokenization should transpire on private or public blockchains.
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