BlackRock Launches Tokenization Fund

BlackRock, the global asset management giant, is taking another step towards tokenization by creating a fund in partnership with Securitize. This fund will enable investors to generate income, with a minimum entry ticket of $100,000.

BlackRock joins tokenization at the dawn of a new financial era!

BlackRock, a financial industry behemoth with over $8,000 billion in assets under management, has filed Form D with the Securities and Exchange Commission for the launch of BlackRock USD Institutional Digital Liquidity Fund.

A collaboration with Securitize, a platform facilitating the tokenization of assets such as equities and real estate, this fund marks the remarkable entry of BlackRock in the promising world of tokenization.

This fund is registered under the jurisdiction of the British Virgin Islands and will operate as a mutual fund. Investors will have the opportunity to pool their capital, with a minimum entry ticket of $100,000, with the aim of generating superior returns, as indicated in the dossier filed with the SEC.

This pioneering structure paves the way for instant transaction settlement and enhanced transparency, key benefits offered by blockchain technology.

Fund shares will be represented by ERC-20 tokens named BUIDL, issued on blockchain Ethereum.

The BlackRock fund already created, but not yet launched!

Although BlackRock created this fund in 2023, it has not yet been officially launched. The filing of Form D with the SEC aims to obtain various regulatory exemptions.

In this case, BlackRock indicated that it was seeking to benefit an exemption under section 3(c) of the Investment Company Act, which would allow it to be exempt from certain restrictive regulations of the SEC.

BlackRock approaches the tokenization market with recognized expertise. Its Bitcoin ETF, launched in January, has a dazzling success, quickly ranking among the top 10 funds in terms of inflows. With a transaction volume exceeding one billion dollars on February 27 and an outstanding surpassing the symbolic $10 billion mark on March 1, IBIT ETF demonstrated investors’ growing appetite for digital assets.

The entry of BlackRock s entry into the world of tokenization comes at a time when many investment banks are actively exploring this technology. Onyx the blockchain branch of JPMorgan for example, has developed a proof of concept highlighting the advantages of tokenization for financial asset management. The interest shown by BlackRock confirms the growing trend for financial institutions to engage in tokenization.