BlackRock Creates Tokenized Asset Fund with $100 Million in USDC Stablecoin

According to CoinDesk, investment management giant BlackRock has filed a document with the U.S. Securities and Exchange Commission (SEC) to create a tokenized asset fund. The BlackRock USD Institutional Digital Liquidity Fund, incorporated on the British Virgin Islands, will be launched in partnership with tokenization firm Securitize. Blockchain data reveals that the fund was seeded with $100 million in Circle's USDC stablecoin using the Ethereum network.

This development comes after BlackRock's entry into the digital asset fund space with the listing of a spot-based bitcoin (BTC) exchange-traded fund (ETF) in January, which accumulated over $15 billion in assets under management. The company also filed for a spot ether (ETH) ETF last year. BlackRock CEO Larry Fink stated in a January interview with CNBC that BTC and ETH ETFs are merely stepping stones towards tokenization, which he believes is the future direction of the industry.

The new fund represents a significant milestone for the tokenization of real-world assets, a growing sector at the intersection of digital assets and traditional finance. This sector involves placing traditional assets on blockchain rails to achieve faster settlements and increased efficiency. Following the news, tokenized RWA platform Ondo Finance's native token ONDO surged as much as 20% and is up 12% over the past 24 hours, outperforming the broad-market CoinDesk 20 Index (CD20) and bitcoin (BTC).

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