BlackRock, in collaboration with Securitize, a prominent asset tokenization firm based in the British Virgin Islands, has introduced the BlackRock USD Institutional Digital Liquidity Fund. While the specific assets held by the fund are undisclosed, Securitize’s involvement suggests a focus on tokenizing real-world assets (RWA). This process involves representing ownership of various assets through blockchain tokens, which is gaining attention for its potential to enhance asset liquidity and operational efficiency.
The announcement and SEC filing of BlackRock’s new fund had an immediate impact on the digital assets market. The native token of Ondo Finance, ONDO, experienced a significant surge of up to 22% in value, outperforming Bitcoin (BTC). Ondo Finance operates a platform for RWA, indicating positive market response to BlackRock’s initiative.
Additionally, Etherscan data showed a transfer of $100 million worth of Circle’s USDC stablecoin to an address associated with a Securitize deployer. This movement is speculated to represent a seed investment into the new fund, though no official confirmation has been provided.
BlackRock’s venture into digital liquidity funds builds upon its ongoing exploration of digital assets. The company gained attention by launching a spot-based Bitcoin ETF in January, accumulating over $15 billion in assets under management. Furthermore, a filing for a spot Ether (ETH) ETF was submitted last year, reflecting BlackRock’s commitment to integrating blockchain technologies into its offerings.
In a January CNBC interview, BlackRock CEO Larry Fink discussed Bitcoin and Ethereum ETFs as initial steps toward a broader transition to asset tokenization. Fink highlighted the potential for faster settlements and improved operational efficiencies, signaling a future direction for the financial sector.