Revolutionizing Markets: How BlackRock’s BUIDL Tokenised Fund on Ethereum is Changing the Game – DL News

BlackRock Makes Waves with First Tokenised Fund on Ethereum

In a groundbreaking move, BlackRock, the world’s largest asset manager, announced its first tokenised fund on the Ethereum blockchain last week. This decision has been hailed by analysts as a significant step towards legitimising the smart contract blockchain and revolutionising the financial markets.

Legitimacy for Ethereum

Bernstein analysts believe that BlackRock’s choice to use Ethereum for its tokenised money market fund, named BUIDL, is a game-changer for the industry. This move not only lends legitimacy to the smart contract blockchain but also paves the way for institutional investors to experience 24/7 instant settlement.

Interoperability and Reduced Costs

The launch of BlackRock’s fund is seen as a major test case for institutional investors to explore the benefits of instant settlement on the blockchain. With the involvement of traditional firms like BNY Mellon and crypto firms like Coinbase and Fireblocks, the fund aims to bridge the gap between the two worlds and reduce operating costs for investors.

Public Blockchain Innovation

Unlike firms like JPMorgan, which have opted for private blockchains, BlackRock’s decision to use Ethereum as a public blockchain opens up a wider design space for interoperability and programmability. This move could lead to tokenised fund redemption on-chain with stablecoins and the integration of new asset classes like bonds.

New Growth Opportunities

BUIDL will invest in US Treasury bills, cash, and repurchase agreements, offering a stable value of $1 per token. This new category of on-chain funds could be a game-changer for asset managers, providing them with commercial revenue opportunities and cost-saving benefits.

Crypto Market Update

In the crypto market, Bitcoin and Ethereum have shown positive movements, with Bitcoin trading around $70,000 and Ethereum surpassing $3,500. These developments indicate a growing interest in digital assets and blockchain technology among investors.

Overall, BlackRock’s foray into tokenised funds on Ethereum marks a significant milestone in the evolution of financial markets and sets the stage for a new era of innovation and growth in the industry.