Ondo Finance’s Post

BlackRock's innovative leap into tokenized treasury funds has marked a significant milestone as its BUIDL fund becomes the largest of its kind, hitting $375 million and surpassing Franklin Templeton's record. This article explores how BlackRock captured nearly 30% of the $1.3 billion tokenized Treasury market in just six weeks, reflecting the growing traction of real-world asset tokenization in the financial sector. #BlackRockBUIDL #TokenizedTreasury #BlockchainFinance #DigitalAssets #Tokenization #FintechInnovation #CryptoTreasury #FinancialMarkets #TradFi #BlockchainGrowth https://lnkd.in/dAQEupJx

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

So it is most definitely the year of tokenized private funds. Blackrock are following on from Larry Fink’s Jan 12 interview and putting an undisclosed (well it is named we just don’t know what is in it) tokenized fund on Securitize. What most of the reports are missing is that the filing of a Form D which in this case is here https://lnkd.in/gFcn8fFV would usually mean the first close (sale) had taken place but in this case Blackrock is indicating the first sale has yet to occur, that it intends to keep the offering open for more than a year and the $525k commission is estimated. There also isn’t anything for the SEC to review, it’s a Reg D 506(c) offering (that means private with a general solicitation) of a fund exempt under 3(c)(7) - that means the fund only takes individuals/companies with over $5M in investments or advisors advising on over $25M. The main reason to pick 3(c)(7) over the other main exemption 3(c)(1) is that 3(c)(1) limits you to 99 investors at all times. In addition to the 3(c)(7) gate, while the minimum buy in of $100k is definitely a lot lower than your typical fund of this type, it is still not exactly like buying $10 of BTC on Coinbase. #digitalassets #tokenization #funds

"Looking at the talk of town, the BlackRock USD Institutional Digital Liquidity Fund ($BUIDL) is a prime example of an asset institutions are increasingly deploying into: tokenized money market funds. BUIDL saw a 5.93% increase in net inflows closing out June 2024 at $483,311,326.32 in AUM. ▪️ Broadridge reports $1M savings for every 100K repo transactions ▪️ Through a Project Guardian proof of concept, #Onyx by J.P. Morgan reports cutting rebalancing portfolios from 3,000 steps to a few clicks of a button (assuming 100,000 discretionary portfolios) ▪️ The proof-of-concept above also resulted in eliminating cash drag from discretionary portfolios by around 18% annually through the use of smart contracts. ▪️ Figure has tokenized $7B+ worth of HELOCs. By issuing, warehousing and securitizing them, they’ve saved 150 bps out of the process. These savings go to the issuer and the end investor. ▪️ Hashnote’s USYC product is looking to work with Broadridge to access the intraday market (primarily for banks), boost their yield, and then pass on to their customers." https://lnkd.in/eapRBTqZ

🚨 Ondo Finance Moves $95M to BlackRock's Tokenised Fund for Instant Settlements 🚨 Ondo Finance, a tokenized real-world asset (RWA) platform, is shifting $95 million of assets to BlackRock's new tokenised fund, BUIDL, to enable instant settlements for its own U.S. Treasury-backed token, OUSG. This strategic move is set to revolutionise the usability of OUSG in the fast paced crypto market. Here's what you need to know: 1️⃣ OUSG was previously backed by BlackRock's iShares Short Treasury Bond ETF, which only traded during traditional market hours, limiting its functionality in the 24/7 crypto space. 2️⃣ By moving to BUIDL, Ondo can now offer instant subscription and redemption at any time, making OUSG more attractive as a store-of-value and collateral asset. 3️⃣ Ondo's allocation to BUIDL marks the first example of a crypto protocol leveraging BlackRock's tokenised fund offering, which launched last week. This move highlights the growing integration between traditional finance and the world of cryptocurrencies, paving the way for more innovative solutions. Read the full article here: https://lnkd.in/eS35Ps8e --- Meet moreliquid. moreliquid is a digital assets platform that offers end-to-end services to asset managers for tokenised securities. ▶ Follow us, moreliquid ▶ Subscribe to our newsletter: https://lnkd.in/g2ZY8QTX

"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

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.

CoinsPaid, a payment processor facilitating transactions between conventional finance-oriented companies and crypto-paying customers, recently experienced a hack on its platform. The Estonian platform reports facilitating about a million transactions monthly, valued at around 7 million EUR, and claims to have managed over 19 billion euros in crypto transactions. Read the full story on the CryptoWeekly website using our link below. #crypto #hack #exploit #estonia #transactions #processor #cryptocurrencies #euro #payments

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 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