Investment giant BlackRock revealed its tokenized asset fund, named 'BUIDL,' built on Ethereum, marking its debut on a public blockchain. The move comes after much speculation from financial and crypto market observers about BlackRock's next significant step.
BlackRock Launches High-Threshold BUIDL Fund to Enhance Digital Asset Investment Services
BlackRock emphasized its commitment to solving real problems for clients in the digital assets space. The firm highlighted benefits such as expanded investor access, transparent settlement, and cross-platform transfers through BUIDL.
While the SEC filing indicated a minimum investment of $100,000, BlackRock announced a higher initial investment threshold of $5 million for the BUIDL fund. Regulatory filings noted a range of investor application values from $1 to $100 million.
To bridge traditional markets with Ethereum, BlackRock enlisted Bank of New York Mellon as custodian and administrator of the fund's assets. Additionally, Securitize Markets, LLC, an SEC registered transfer agent, will play a crucial role.
Carlos Domingo of Securitize Optimistic About Security Tokenization Revolution, Expects Ethereum Spot ETF Approval to Trigger Market Volatility
Securitize co-founder and CEO Carlos Domingo expressed optimism about the transformative potential of securities tokenization, emphasizing the increased accessibility of traditional financial products through digitization.
Although the approval of spot Ethereum ETFs remains uncertain, analysts anticipate significant price movement if such investment vehicles gain approval. BlackRock CEO Larry Fink sees Ethereum ETFs as steps towards broader tokenization.
The SEC has delayed decisions on Ethereum ETF applications, including those from BlackRock, with a looming deadline in May. Some experts suggest that the delay might be preferable given the uncertainties surrounding regulatory approval.