GAIAC CAPITAL’s Post

"Investment management giant BlackRock (BLK) has created a fund called the BlackRock USD Institutional Digital Liquidity Fund, according to a document filed with the U.S. Securities and Exchange Commission (SEC). The fund, incorporated in the British Virgin Islands, will be launched in partnership with asset tokenization firm Securitize." #cryptoinvestment #funds #cryptoadoption #tokenization #crypto #cryptoassets #digitalassets

BlackRock partners with Securitize to launch the BlackRock USD Institutional Digital Liquidity Fund, signaling a strong move towards the tokenization of real-world assets (#RWA). This follows CEO Larry Fink’s statement on BTC and ETH ETFs as stepping stones towards a broader tokenization trend in finance. The fund’s incorporation in the British Virgin Islands and a notable $100M USDC transaction hint at ambitious plans in the digital asset space. #crypto #investment #tokenization https://lnkd.in/gxpmSPMJ

The democratization of private equity and private fund tokenization go hand in hand, and this may be the early innings of a #tokenization revolution. In my discussions with Haynes and Boone, LLP colleagues in our #FundFinance, Investment Management, and Digital Assets, Blockchain and Cryptocurrency groups, we’ve discussed the various benefits to Funds considering tokenization (fractionalization, standardization, efficiency, transparency, etc.), and the potential issues lenders will need to work through if a tokenized fund utilizing an unfunded commitment structure wants to explore a subscription line credit facility. Several parallels can be drawn from HNWI concentrated Funds/facilities, but given the new technology, there are also a host of new issues. If anyone else is thinking about these same considerations, please feel free to reach out. I’ve added some additional reading links in the comments, feel free to drop any other articles you've liked on the topic as well! https://lnkd.in/gyVgxFF6  

BlackRock has just entered the Real-World Assets (RWA) sector. And has thus begun to implement its vision of tokenizing the world's assets. Together with the tokenization platform Securitize, the world's largest asset manager launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) - its first ever tokenized money market fund. Interestingly, the blockchain of choice wasn't some private or high-throughput network but the Ethereum Mainnet itself - something that surely can be attributed to the network's liquidity and security. With a current fund size of around $110 million, BUIDL is already the third largest product of its kind, right after the products provided by Franklin Templeton and the Mountain Protocol. 𝐁𝐮𝐭 𝐡𝐨𝐰 𝐝𝐨𝐞𝐬 𝐁𝐔𝐈𝐃𝐋 𝐰𝐨𝐫𝐤? ▶ First of all, the fund is backed by a mix of cash reserves, US treasuries and repurchase agreements (repos). ▶ Whitelisted investors initially need to contribute at least $5 million to invest, with plans to lower the minimum investment to $100,000 over time. ▶ In exchange, they receive BUIDL tokens for trading with other whitelisted investors. ▶ Similar to a stablecoin, the value of these tokens aims to be pegged to one US dollar, with BUIDL holders earning returns from the fund through daily token distributions. Now, some might wonder about the purpose behind all of this. The reasons are the benefits that come with tokenization. • 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐞𝐟𝐟𝐢𝐜𝐢𝐞𝐧𝐜𝐲: Right now, the settlement of traditional securities transactions takes up to two days, resulting in higher opportunity costs. Instant settlement on blockchain rails fixes this. • 𝐂𝐨𝐬𝐭 𝐫𝐞𝐝𝐮𝐜𝐭𝐢𝐨𝐧: The programmability of tokenized assets allows for the automation of certain workflows, thereby reducing costs significantly. • 𝐃𝐞𝐦𝐨𝐜𝐫𝐚𝐭𝐢𝐳𝐚𝐭𝐢𝐨𝐧: Currently, only accredited investors have the privilege to invest in BlackRock's BUIDL. However, tokenized products broadly hold the potential to open up access to something like treasury yields for a diverse new pool of investors, particularly those outside the US. 𝐌𝐲 𝐓𝐚𝐤𝐞 The success of this initiative might set the stage for a significant transformation in the digital assets markets, encouraging additional funds to follow suit and further accelerate the tokenization of the world's assets. We at Blockwall will be keeping a close eye on these developments. #Tokenization #BlackRock #Securitize #BUIDL #Ethereum

🚀📈 Canary Capital is set to shake up the crypto market with its exciting proposal for a spot XRP exchange-traded fund (ETF), offering a new, simplified avenue for investors. This initiative seeks to bypass the direct complexities of holding XRP, allowing engagement via traditional brokerage accounts, but faces uncertainty amid Ripple's ongoing SEC litigation. With key aspects like asset custody still unclear, the ETF's approval remains in question, stirring debate on potential impacts. How might Canary Capital's ETF proposal influence the future of crypto investments? 👀

What's driving adoption of real world assets? Crypto-native businesses: "The growth for BlackRock's tokenized product has been fueled by other decentralized finance (DeFi) protocols such as Ondo Finance and Mountain Protocol using BUIDL as a backing asset for their own yield-products. Digital asset brokers such as FalconX and, most recently, Hidden Road, also added the token to collateral assets for their institutional investor clients across their networks." https://lnkd.in/g4R2ucVx

"If you BUIDL it, they will come" - BlackRock's tokenized treasury BUIDL fund tops $500 million. It reached this milestone within 4 months. 📌 Size of Tokenized U.S. Treasury Products - The overall market of tokenized U.S. Treasury products has reached $1.8 billion - RWA.xyz - The overall tokenized treasury market, including BUIDL, has more than doubled this year, growing to $1.8 billion as of June 7 from $780 million in January - RWA.xyz 📌 Verify the Size of the Fund On-chain - You can check the size of the fund through on-chain data via Etherscan here https://lnkd.in/g3cwjH-U #tokenization

Creating blockchain-based tokens of traditional investments such as bonds and funds – known as tokenization of real-world assets (RWA) – is a fast-growing use case for blockchains as digital assets and traditional finance (TradFi) are becoming more intertwined.

🥳 CFTC Subcommittee Sends Up Recommendations for Letting Firms Use Tokenized Shares as Collateral! 🙌 This is a BIG 🏃♀️➡️ step in the right direction! 💸 The likes of BlackRock and Franklin Templeton could see tokenized shares of their money-market funds pledged in trading after a major group under the aegis of the U.S. Commodity Futures Trading Commission (CFTC) approved guidelines for their use, Bloomberg reported on Thursday. 📈 BlackRock's USD Institutional Digital Liquidity Fund (#BUIDL) is an example of how creating blockchain-based tokens of traditional investments such as bonds and funds is a fast-growing use case for the larger digital asset space. The BUIDL fund became the largest tokenized Treasury fund just six weeks after its late launch in March. It surpassed $500 million market value in July. 🌊 Ondo Finance is the largest holder of the BUIDL fund! Article here: https://lnkd.in/g37WDKaR

Tokenization=Efficiency, liquidity + accessibility through fractional ownership. Goldman Sachs leading the way. #crypto #digitalassets #digitalcurrency #cryptoregulation #securities #usdc #usdt #pyusd #dai #fdusd #qcad #cadt #usdd #digitalpayments #stablecoinlegislation #securitiesact #exchangeact #rwa #CBDC #tokenization