Blackstone Launches First Tokenized Fund on Ethereum BUIDL

American asset management giant BlackRock has launched its first tokenized fund on the Ethereum blockchain.
The tokenized fund is called the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The product marks another way BlackRock is deepening its foothold in the blockchain space.
BUIDL is a new initiative made possible through BlackRock’s partnership with Securitize, a startup known for tokenizing real-world assets.
BlackRock’s foray into the crypto ecosystem remained a key highlight for the industry over the past year. Many believe that BlackRock’s efforts to support a spot Bitcoin ETF last year was one of the key turning points that helped the product gain approval.
However, the launch of BUIDL with Securitize marks an important turning point for the company. Its core goal is to provide qualified investors with a way to earn a return in U.S. dollars.
BlackRock will also enable BUIDL subscribers to issue and trade titles on Ethereum, gain access to on-chain products, and provide on-chain settlement.
Based on economic dynamics, the BUIDL product will provide a standard stable value of $1 per token. As BlackRock noted, the asset management will be invested in "cash, U.S. Treasury bills and repurchase agreements."
An important component of the fund is its partnership with BNY Mellon. The banking giant will help ensure interoperability between digital and mainstream financial markets.
The BUIDL ecosystem includes other key players at launch, including Anchorage Digital Bank, Fireblocks and Coinbase, a long-time crypto partner of BlackRock.
Setting key steps
The trend of mainstream companies accepting crypto products is at its peak, with Commerzbank becoming the first full-service bank to receive a crypto custody license.
Ripple and its subsidiary Metaco have also helped bridge the gap in mainstream banks offering crypto custody services. Last November, British multinational bank HSBC accepted their solution to provide institutional-grade crypto custody services.
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