BlackRock, a renowned asset management firm, recently announced its selection of Coinbase as the key infrastructure provider for its tokenized investment fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund aims to maintain a stable value of $1 per token and distribute daily accrued dividends directly to investors’ wallets in the form of new tokens each month. By investing 100% of its assets in cash, U.S. Treasury bills, and repurchase agreements, the fund offers investors the opportunity to earn yield while holding the token on the blockchain.
Collaboration with Securitize
The development of the BUIDL fund was made possible through a partnership with tokenization company Securitize. Coinbase, in a statement on social media platform X (formerly Twitter), announced its role as an infrastructure provider for the new fund. While specifics regarding Coinbase’s involvement were not disclosed, the company highlighted this collaboration as a further indication of its commitment to supporting traditional institutions venturing into the cryptocurrency industry. Coinbase emphasized its dedication to facilitating the integration of institutions into the world of crypto and showcasing its ability to offer the necessary technology and products to facilitate the evolving tokenization sector.
Existing Business Relationship
Coinbase’s association with BlackRock extends beyond the BUIDL fund. The cryptocurrency exchange serves as the custodian for BlackRock’s flagship spot Bitcoin exchange-traded fund (ETF) product, IBIT. Additionally, other prominent institutions such as BNY Mellon, Fireblocks, Anchorage Digital Bank, and BitGo are part of the fund’s ecosystem. Notably, on-chain data reveals that an Ethereum wallet linked to BlackRock’s BUIDL fund has received significant contributions from various members of the crypto community. The wallet, identified by blockchain intelligence platform Arkham Intelligence, has amassed donations exceeding $50,000 in value, comprising a mix of memecoins and non-fungible tokens (NFTs) like PEPE, ROCK, and GAINS. At present, the total assets held in the wallet amount to $100.05 million.
This collaboration between BlackRock and Coinbase signifies a milestone in the integration of traditional finance and digital assets, showcasing the increasing interest from established institutions in the crypto space. By leveraging Coinbase’s technological expertise and Securitize’s tokenization capabilities, the BUIDL fund aims to provide investors with a secure and transparent avenue to participate in the digital economy. The evolution of such partnerships underscores the growing potential of blockchain technology and tokenized assets in reshaping the future of investment management.
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