After launching a bitcoin-backed fund, the asset management giant is now banking on the tokenization of real-world assets.

Blackrock is definitely carving out a place for itself in the crypto ecosystem. After launching its spot bitcoin ETF, the asset manager is tackling a trendy sector: the tokenization of real-world assets (RWA).

The American giant has unveiled the launch of its first tokenized asset fund on the Ethereum blockchain. “This is the latest advancement in our digital asset strategy,” said Robert Mitchnick, Blackrock’s head of digital assets.

Called “BUIDL” (for Blackrock USD Institutional Digital Liquidity Fund), this fund will allow institutional holders of its token to receive returns in dollars from cash or US Treasury bills. The operation of this token works like a stablecoin backed by the dollar.

A booming sector

As a reminder, tokenization makes it possible to represent real assets (bonds, real estate, etc.) on a blockchain. Ownership rights to a real asset are converted into one or more tokens on a blockchain. Individuals can also exchange these tokens anytime, anywhere, with transparent and secure transactions.

While the credo of the tokenization of real-world assets is to allow each individual to find a place in areas previously accessible only to a certain fringe of investors, the Blackrock fund is currently only open to to its wealthy clients.

Before Blackrock, the banks Citi and even JPMorgan had already offered similar offers to their clients. These players are banking on a booming sector: as Coindesk points out, tokenized US Treasury bonds have increased from $100 million at the start of 2023 to $730 million to date.


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