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BlackRock has announced the creation of the BlackRock USD Institutional Digital Liquidity Fund in partnership with Securitize, a leading asset tokenization company from the British Virgin Islands.
While the specific assets the fund will hold remain undisclosed, Securitize's involvement hints at a focus on real-world asset (RWA) tokenization. The process involves representing ownership of a wide range of assets through a blockchain token, a practice that is gaining traction for its potential to improve asset liquidity and efficiency.
The announcement and SEC Filing of BlackRock's new fund had an immediate impact on the digital asset market. Ondo Finance's native token, ONDO, saw an increase of up to 22% in value, significantly outperforming bitcoin (btc). Ondo Finance operates a platform for RWA, highlighting the positive market reaction to BlackRock's initiative.
Etherscan It also indicated a movement of $100 million of Circle's USDC stablecoin to an address linked to a Securitize implementer. There is speculation that the motion represents an initial investment in the new fund, although such connections have not been confirmed.
The venture into digital liquidity funds builds on BlackRock's continued exploration of digital assets. The company made headlines by listing a spot bitcoin ETF in January, which quickly amassed more than $15 billion in assets under management. Additionally, an application for an Ether (eth) spot ETF was filed last year, signaling BlackRock's deepening commitment to integrating blockchain technologies into its offerings.
In a CNBC interview in January, BlackRock CEO Larry Fink shared that btc and eth ETFs are preliminary steps toward a broader shift toward asset tokenization. According to Fink, this represents a future direction for the financial sector, offering prospects for faster settlements and greater operational efficiencies.
