As reported earlier, BlackRock, the largest asset manager in the world, is partnering with Securitize to issue a digital asset fund. Securitize is a leading enabler of digital securities in the US and operates a trading platform, as it has been approved to run an ATS [alternative trading system].
At the same time, BlackRock has invested in Securitize. Details of the investment were not immediately available. BlackRock’s Global Head of Strategic Ecosystem Partnerships, Joseph Chalom, has been appointed to Securitize’s Board of Directors as part of the deal.
BUIDL, or the BlackRock USD Institutional Digital Liquidity Fund, seeks to generate income for investors. Aiming to hold a stable $1 value, BUIDL will pay daily accrued dividends directly to investors’ wallets as new tokens each month. The Fund’s initial investment minimum is said to be $5 million.
The Fund invests 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain. These digital assets may be transferred at any time to pre-approved investors.
BlackRock Financial Management will manage the Fund’s investments, and Bank of New York Mellon will serve as its custodian and administrator.
Securitize will act as a transfer agent and tokenization platform, managing the tokenized shares and reporting on Fund subscriptions, redemptions, and distributions.
Securitize Markets will act as placement agent, making the Fund available to eligible investors.
Carlos Domingo, CEO and co-founder of Securitize, said the partnership is emblematic of how tokenized securities can transform traditional markets.
The initial ecosystem participants in BUIDL include big names in the digital asset sector, such as Anchorage Digital Bank NA, BitGo, Coinbase, Fireblocks, and others.