Circle and BlackRock Partner to Tokenize Fund Shares: A Milestone in Digital Asset Integration
Circle, a prominent player in the digital currency market, has recently announced a new offering that allows for the trading of BlackRock’s tokenized fund shares using the stablecoin USDC. This innovation marks a significant step forward in the integration of traditional finance with the burgeoning world of digital assets, offering investors a new level of convenience and flexibility in their investment strategies.
BlackRock’s first tokenized fund now lets investors swap their shares for USDC.
This change allows people selling the shares to keep digital dollars.
Circle, the stablecoin issuer, announced this feature on Wednesday. It works through new smart contract tools in the secondary market.
This news comes after BlackRock launched its BlackRock USD Institutional Digital Liquidity Fund, nicknamed $BUIDL, last month.
With around $10 trillion in assets, BlackRock is the biggest asset manager globally. Their new fund lets qualified investors earn US dollar yields by signing up through Securitize Markets.
Robert Mitchnick, BlackRock’s digital assets head, sees this as part of their digital strategy.
Using blockchain to create digital versions of real assets, like real estate or debt securities, has been getting more popular in traditional finance. Big banks like Citi and JPMorgan have been trying out these ideas too.
Circle’s co-founder Jeremy Allaire said tokenizing assets helps investors by making transactions faster and cheaper.
BlackRock’s CEO Larry Fink has also talked about how tokenized securities could be the future of finance.
Besides this fund, BlackRock also launched a bitcoin ETF earlier this year. It’s become the fastest-growing ETF ever, with $18.5 billion in assets so far.
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