On March 19, BlackRock informed the U.S. Securities and Exchange Commission (SEC) about the creation of a new U.S. dollar digital institutional fund. This fund, with a minimum investment of $100,000 and expectations of $525,000 in sales commissions, is a move toward integrating traditional finance with DeFi.
Securitize, a leading real-asset tokenization (RWA) company, has been selected as the beneficiary of the sales compensation.
Larry Fink, CEO of BlackRock, has proposed a structural change in the financial sector through the tokenization of financial assets.
This change implies that each stock and bond would be linked to a unique identifier in a common system of record.
This focus by BlackRock on tokenization and its involvement in DeFi and Web3, especially with the start of its new fund, raises questions about cryptocurrencies providing the infrastructure for these initiatives.
In this context, cryptocurrencies such as VeChain, Chainlink, IOTA and Ethereum could be impacted in a number of ways:
VeChain could play an important role as an intermediary between physical assets and their digital equivalent, enhancing the ability to track and verify the authenticity of digital assets .
Chainlink can provide an essential service through reliable oracles that supply smart contracts with accurate information from the physical world, crucial for digital asset management .
IOTA, focused on the Internet of Things (IoT), is poised to expand its use in the verification and monitoring of digitized physical assets, spanning from artwork to property .
Ethereum, as a leading platform for token development and decentralized applications, anticipates growth in its use as more financial assets are digitized on its blockchain.
You can read: BlackRock Enters Tokenization Race: Launches Ethereum-Based Fund Amid Regulatory Rumors – Is ETH in Danger?
BlackRock’s participation in this field confirms blockchain and tokenization as financial tools for the future and could drive the uptake of cryptocurrencies and associated technologies by institutional entities.
This would result in an expansion in the breadth and depth of the digital asset market and decentralized finance (DeFi).
The discussion on the adaptation and benefit to be gained by cryptocurrencies providing the infrastructure underlines the constant change and rapid development of the cryptocurrency and DeFi sector.
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