BlackRock, the world’s largest asset manager, has partnered with cryptocurrency exchange Coinbase to launch the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), a blockchain-based investment fund designed to offer U.S. dollar yields through tokenization.
The announcement on Wednesday marks a step in the integration of traditional finance with blockchain technology, with BUIDL leveraging US$100 million in USDC stablecoin transactions, BlackRock said in a press release.
BUIDL aims to provide qualified investors with a stable token value pegged at US$1 and the opportunity for daily dividends, marrying the stability of safe assets like U.S. Treasury bills with the efficiency of blockchain technology.
The fund’s infrastructure is supported by a consortium of firms, including Anchorage Digital Bank NA, BitGo, Fireblocks, and Coinbase.
BlackRock’s foray into tokenization with BUIDL, coupled with its existing Bitcoin holdings in the iShares Bitcoin Trust, indicates a deepening commitment to digital assets.