Securitize just made some waves in the tokenized asset seas, letting TradFi players seamlessly swap between Circle’s stablecoin and good old U.S. dollars. But that’s not all – the real kicker is how they’re plugging this service into BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL). The integration promises to cut investment fees and make getting into the BUIDL fund a breeze for big-shot investors looking for exposure.
The fund, which dishes out tokenized shares, lets institutional whales tap into U.S. Treasury bills and other secure assets, all while keeping things on-chain. Yep, no off-ramps necessary. This innovation puts the spotlight on how blockchain can streamline what was once a clunky process in the world of traditional finance.
On-Chain Conversion, Immediate Settlement
So, how’s this magic trick happening? Enter Zero Hash, a blockchain infra powerhouse that’s handling the conversion. They’re the muscle behind swapping dollars for digital assets in the BUIDL ecosystem. According to Securitize’s CEO Carlos Domingo, this move lets digital asset companies stay fully on-chain, even through the entire investment cycle. It’s all about those near-instant, transparent settlements. Forget waiting days for transfers; everything’s being processed across platforms at blockchain speed.
With BUIDL sitting pretty at $550 million in assets under management (AUM), it’s clear this isn’t some fly-by-night operation. The Ethereum-powered tokenized shares have sparked a rush in tokenized real-world asset (RWA) funds. BlackRock and Securitize have been quietly stacking those digits, but they’re not alone.
BUIDL’s Ascent and Tokenized Real-World Assets Boom
Earlier this year, BUIDL hit $375 million AUM, and since then, it’s been on a steady climb. Data from Etherscan shows its assets have swelled by 46% in recent months. Institutional players are flocking to these tokenized shares, not only because of the yields but also due to the liquidity and the transparency of on-chain transactions.
The SEC’s approval of 11 spot Bitcoin ETFs in January cracked open the door for tokenized funds like BUIDL, and the industry’s not looking back. Guggenheim Treasury Services, Zeconomy, and Midas are all joining the RWA party, launching similar products. Ondo Finance and Mountain Protocol are even using BUIDL as a backbone for their yield-generating products.
The tokenization wave keeps building.
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