BlackRock, the world's largest asset management company, has launched a new tokenized asset fund, according to a filing submitted to the SEC on March 19.

The initiative, named BlackRock USD Institutional Digital Liquidity Fund, is registered in the British Virgin Islands and has been developed in collaboration with San Francisco-based Securitize, specializing in asset tokenization.

The technical details of the fund and the asset classes it intends to tokenize have not been disclosed in the filing and remain vague. Blockchain data shows that the fund has been endowed with an initial capital of $100 million USDC on the Ethereum blockchain.

The Creation of the BlackRock USD Institutional Digital Liquidity Fund reflects the growing interest in the tokenization of real-world assets. This emerging sector aims to combine the capabilities of digital assets with traditional finance to streamline the settlement process and enhance transaction efficiency through blockchain technology.

The market has responded positively to the fund's announcement, with a notable increase in the value of ONDO, the native token of Ondo Finance, a platform that facilitates the tokenization of real-world assets. The token was trading at $0.76 at the time of publication and has surged by 43% in the last 24 hours.

With this new project, BlackRock has positioned itself at the forefront of integrating digital assets into traditional financial services, potentially paving the way for new institutional investments in blockchain technology.

BlackRock's Crypto Journey

The Digital Liquidity Fund is the latest step in BlackRock's broader journey into the digital assets sector after the company launched its spot Bitcoin ETF - IBIT - in January. The ETF has recorded record performance since its launch, attracting over $15 billion in assets under management in a short period.

The company also has an Ethereum ETF application in the works and is considered optimistic about cryptocurrencies and the underlying blockchain technology that enables tokenization.

Larry Fink, CEO of BlackRock, recently emphasized the strategic importance of BTC and ETH ETFs as a precursor to broader adoption of tokenization in the financial sector. He stated that these products would open the door to significant shifts towards integrating digital assets into conventional financial practices.

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