Blackrock's digital assets chief views this step as a progression in their digital assets strategy, aiming to provide effective solutions in the digital assets sector to meet their clients' needs.

Blackrock Launches Tokenized Fund with Coinbase's Backing

Blackrock, the largest asset manager globally, revealed its first tokenized fund on a public blockchain in collaboration with Securitize Markets, resulting in the Blackrock USD Institutional Digital Liquidity Fund (BUIDL).

Coinbase Institutional announced its selection to provide essential infrastructure for Blackrock's new fund, emphasizing its dedication to linking institutions to cryptocurrency and supporting the rapidly expanding tokenization industry.

Investors meeting the criteria can earn U.S. dollar yields by subscribing on the blockchain through Securitize Markets. The fund invests all its assets in cash, U.S. Treasury bills, and repurchase agreements, enabling investors to earn yield while holding tokens on the blockchain. The BUIDL fund aims to maintain a stable value of $1 per token and distributes daily accrued dividends directly to investors' wallets as new tokens monthly.

Blackrock Expands Digital Assets Strategy with Coinbase's Assistance

Coinbase not only provides infrastructure but also offers custody services for Blackrock's bitcoin holdings in the Ishares Bitcoin Trust (IBIT), the world's largest asset manager's spot bitcoin exchange-traded fund (ETF). Additionally, Blackrock has applied to the Securities and Exchange Commission (SEC) to launch its Ishares Ethereum Trust.

Robert Mitchnick, Blackrock's digital assets head, highlights the advancement of their digital assets strategy, emphasizing their commitment to developing solutions in the digital assets field to address genuine client needs. He expresses enthusiasm for collaborating with Securitize.

Initial participants in the BUIDL ecosystem include Anchorage Digital Bank NA, Bitgo, Coinbase, and Fireblocks. Blackrock Financial Management will serve as the fund's investment manager, with Bank of New York Mellon acting as the custodian of the fund's assets and administrator. Securitize will play a vital role as Blackrock's transfer agent and tokenization platform.