BlackRock, one of the world’s largest asset management firms, has announced the establishment of the BlackRock USD Institutional Digital Liquidity Fund in collaboration with Securitize, a prominent asset tokenization company based in the British Virgin Islands.
While the specific composition of assets in the fund has not been disclosed, Securitize’s involvement suggests a focus on tokenizing real-world assets (RWA). This process involves representing ownership of various assets through blockchain tokens, aiming to enhance asset liquidity and efficiency.
The unveiling of BlackRock’s new fund, coupled with its SEC filing, had an immediate impact on the digital assets market. Ondo Finance’s native token, ONDO, surged by up to 22% in value, outperforming Bitcoin (BTC). Ondo Finance operates a platform for RWA, indicating the market’s positive response to BlackRock’s initiative.
Etherscan data also revealed a transfer of $100 million worth of Circle’s USDC stablecoin to an address associated with a Securitize deployer. While not officially confirmed, this movement is speculated to represent a seed investment into the new fund.
BlackRock’s foray into digital liquidity funds builds on its ongoing exploration of digital assets. The company made headlines by launching a spot-based Bitcoin ETF in January, which quickly amassed over $15 billion in assets under management. Additionally, BlackRock filed for a spot Ether (ETH) ETF last year, signaling its deepening commitment to integrating blockchain technologies into its offerings.
In a January CNBC interview, BlackRock CEO Larry Fink emphasized that BTC and ETH ETFs are just the beginning of a broader shift toward asset tokenization. Fink believes that this represents the future direction of the financial sector, offering opportunities for faster settlements and improved operational efficiencies.
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