BlackRock has launched its first tokenized fund on the Ethereum network and announces a strategic investment in the company Securitize, co-founded and led by the Spanish Carlos Domingo.
BlackRock’s first tokenized fund, called BlackRock USD Institutional Digital Liquidity Fund (BUIDL), offers $1 per token and pays dividends directly to investors’ wallets with new tokens each month.
The fund is represented by the BUIDL token and the company reports that it invests 100% of its total assets in cash, US Treasury bills and repurchase agreements, allowing investors to earn returns while holding the token on the blockchain.
“Investors can transfer their tokens 24/7/365 to other pre-approved investors. Fund participants will also have flexible custody options that will allow them to choose how to hold their tokens,” says BlackRock.
Securitize will act as a tokenization platform and transfer agent. The company led by Domingo will be in charge of managing the tokenized shares and will report on subscriptions, redemptions and distributions of funds. Securitize Markets, launched in 2021, will act as placement agent, making the Fund available to investors. Bank of New York Mellon will act as custodian of the Fund’s assets and administrator. Anchorage Digital Bank, BitGo, Coinbase and Fireblocks also participate in the fund. The auditor of the fund, for the period ending December 31, 2024, is PricewaterhouseCoopers.
BlackRock reports that it has made a strategic investment in Securitize, without detailing the amount. As part of the investment, Joseph Chalom, BlackRock’s global head of strategic ecosystem partnerships, has been appointed to Securitize’s board of directors.
Upon the launch, Robert Mitchnick, head of digital assets at BlackRock, was delighted to be working with Securitize and indicated that the company is focused on developing solutions in the digital asset space that help solve real problems.
For his part, Domingo, co-founder and CEO of Securitize, explained that tokenization of securities could fundamentally transform capital markets. Today’s news shows that traditional financial products are becoming more accessible thanks to digitalization, he said. Domingo said he is proud that Securitize is BlackRock’s tokenization platform and preferred placement agent to digitize and expand access to its investment products.