BlackRock Collaborates with Securitize to Establish Fund for Real-World Asset Tokenization

CoinDesk reports how BlackRock CEO Larry Fink emphasized the company’s strategic direction in a recent interview, stating that their filings for spot bitcoin and ether ETFs marked “are stepping stones towards tokenization.” This statement underscores BlackRock’s trajectory toward embracing blockchain-based asset representation.

The investment management powerhouse, BlackRock (BLK), has introduced a new fund named the BlackRock USD Institutional Digital Liquidity Fund, as indicated by a document submitted to the U.S. Securities and Exchange Commission (SEC). This fund, registered in the British Virgin Islands, is set to debut in collaboration with Securitize, a notable player in asset tokenization.

While the specifics of the fund’s asset composition remain undisclosed, the involvement of Securitize suggests a potential linkage to the tokenization of real-world assets (RWA). Upon the disclosure of BlackRock’s filing, the native token of Ondo Finance, ONDO, experienced a significant surge, reaching a peak of 20% and sustaining a 12% increase over the past 24 hours. This performance outpaced both the broad-market CoinDesk 20 Index (CD20) and bitcoin (BTC). Ondo Finance operates within the RWA platform domain.

Industry observers noted a blockchain data revelation indicating a transfer of $100 million worth of Circle’s USDC stablecoin onto the Ethereum network, directed towards an address affiliated with a Securitize deployer. This transfer potentially signifies an initial investment into the fund, although definitive confirmation is unavailable.

This initiative follows BlackRock’s previous ventures into digital asset funds, notably the launch of a spot-based bitcoin (BTC) exchange-traded fund (ETF) in January, which quickly amassed over $15 billion in assets under management. Additionally, the company submitted filings for a spot ether (ETH) ETF the previous year.

Larry Fink reiterated BlackRock’s commitment to this direction in a January interview with CNBC, emphasizing that BTC and ETH ETFs “are just stepping stones towards tokenization, and I really do believe this is where we’re going to be going.” This sentiment underscores the evolving landscape where traditional assets are integrated into blockchain frameworks to facilitate faster settlements and enhance operational efficiency.

Read other stories: Hong Kong issues guidance for banks on custody and sale of tokenized products

EMURGO Invests in NFT and Asset Tokenization Provider NMKR