BlackRock seeks approval to launch its first tokenized asset fund on the Ethereum blockchain: the goal is to increase efficiency and transparency in the financial sector.
Investment firm BlackRock has applied to the SEC for the establishment of its first tokenized asset fund, named the BlackRock USD Institutional Digital Liquidity Fund, utilizing the Ethereum blockchain.
For the establishment of its new fund, BlackRock has created an ERC-20 token called BUIDL. This initiative aims to innovate traditional asset management by introducing a token that facilitates instant settlement of asset transfers and fights financial crime. Operating under the laws of the British Virgin Islands, the fund requires a minimum investment of $100,000.
BlackRock has enlisted the support of Securitize, a leading company in the field of digital securities in the United States, for the operation. Securitize is committed to ensuring that BlackRock’s tokenized offering complies with all regulatory guidelines.
BlackRock CEO Larry Fink has emphasized the importance of tokenization in asset management. According to Fink, the use of tokens in traditional finance could lead to more efficient processes, greater transparency, and a reduced risk of illegal activities.
In a recent interview with Bloomberg, Larry Fink stated:
“We believe the next step going forward will be the tokenization of financial assets, and that means every stock, every bond […] will be on one general ledger.
Every investor will have their identification, enabling us to eradicate issues surrounding illicit activities in the realm of bonds, stocks, and digital assets.”
