- BlackRock’s new tokenized BUIDL fund has attracted $160 million in deposits within first week of launch
- BUIDL is a tokenized money market fund investing in US Treasuries and cash; uses Ethereum blockchain and Securitize for issuing tokens
- Quick influx of deposits shows strong initial demand for BlackRock’s first tokenized fund offering as firm further embraces crypto
BlackRock‘s new tokenized investment fund has received approximately $160 million in deposits within its first week of launching.
Background on BlackRock’s Digital Asset Offerings
BlackRock is the world’s largest asset manager with over $10 trillion in assets under management. The firm has been increasing its involvement with digital assets over the past couple of years:
- In January 2023, BlackRock secured SEC approval for a spot bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT). IBIT has attracted over $15 billion in investments, making it the second-largest spot bitcoin ETF behind Grayscale‘s GBTC.
- BlackRock recently launched its first tokenized investment fund called the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). BUIDL is a tokenized money market fund that invests in US Treasury bills, repurchase agreements, and cash.
Deposits into BUIDL
According to a report on Wednesday by Bloomberg, BUIDL has raised $160 million since launching last week.
Tokenized real-world asset (RWA) platform Ondo Finance announced it is allocating a substantial portion of the assets from its tokenized short-term US Treasury bills ETF (OUSG) into BUIDL. Ondo told CoinDesk it is moving $95 million into BUIDL, though it is unclear if that $95 million is included in the $160 million total reported by Bloomberg.
BUIDL uses the Ethereum blockchain and works with Miami-based Securitize for issuing tokens. The BUIDL tokens are designed to offer a stable value of $1 per token and pay dividends to qualified investors in the form of tokens representing US dollar yield.
The quick influx of deposits indicates strong initial demand for BlackRock’s first tokenized fund offering. As the world’s largest asset manager dives further into the crypto space, products like BUIDL could see significant growth, especially from institutional investors.
