According to a document that was submitted to the United States Securities and Exchange Commission (SEC), the investment management behemoth BlackRock (BLK) has established a fund that is known as the BlackRock USD Institutional Digital Liquidity Fund.
The asset tokenization company Securitize will be working with the British Virgin Islands-based fund to develop the fund, which will be formed in the British Virgin Islands.
There is no information provided in the filing regarding the assets that will be held by the fund; nevertheless, the existence of Securitize may imply that the product is associated with the tokenization of real-world assets, also known as RWA. RWA is a term used in the industry to refer to the process of expressing ownership of a wide variety of assets through a token that is stored on a blockchain
Ondo Finance's native token, ONDO, experienced a significant surge of up to 20% after the publication of BlackRock's filing. Furthermore, it has experienced a 12% increase over the previous twenty-four hours, surpassing both the broad-market CoinDesk 20 Index (CD20) and bitcoin {{BTC}}. A RWA platform is managed by Ondo.
Observers pointed to blockchain data that demonstrated that one hundred million dollars worth of Circle's USDC stablecoin operated on the Ethereum network was transferred to an address associated with a Securitize deployer. This transfer has the potential to constitute a seed investment into the fund, however it is not certain that this is the case.
The move comes after BlackRock made its first step into the realm of digital asset funds by establishing a spot-based bitcoin exchange-traded fund (ETF) in January. This ETF had accumulated more than $15 billion worth of assets under management until this move. In addition, the company submitted an application for a spot ether exchange-traded fund (ETF) in the previous year.
According to statements made by BlackRock CEO Larry Fink in an interview with CNBC in January, Bitcoin and Ethereum exchange-traded funds (ETFs) "are just stepping stones towards tokenization and I really do believe this is where we are going to be going."
At the junction of digital assets and traditional banking, there is a burgeoning sector known as tokenization of real-world assets. This sector entails placing traditional assets on blockchain rails in order to achieve faster settlements and increased efficiency.
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