News
BlackRock launches its first tokenized fund, BUIDL, on the Ethereum network
Investors can subscribe through Securitize Markets, LLC to participate in the fund
BlackRock invests in Securitize to drive digital asset infrastructure transformation
NEW YORK, March 20, 2024–(BUSINESS FEED)–BlackRock today unveiled its first tokenized fund issued on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (“BUIDL” or the “Fund”). BUIDL will offer qualified investors the opportunity to earn U.S. dollar returns by subscribing to the Fund through Securitize Markets, LLC.
“This is the latest advancement in our digital assets strategy,” said Robert Mitchnick, BlackRock’s head of digital assets. “We are focused on developing solutions in the digital asset space that help solve real-world problems for our customers, and we are excited to work with Securitize. »
Tokenization remains a key focus of BlackRock’s digital asset strategy. Through the tokenization of the Fund, BUIDL will provide investors with significant benefits by enabling the issuance and trading of property titles on a blockchain, expanding investor access to on-chain offerings, providing instant and transparent settlement and by allowing transfers between platforms. BNY Mellon will enable Fund interoperability between digital and traditional markets.
“Tokenization of securities could fundamentally transform capital markets. Today’s news demonstrates that traditional financial products are being made more accessible through digitalization. Securitize is proud to be the transfer agent, the platform tokenization and BlackRock’s investment agent of choice to digitize and expand access to its investment products,” said Carlos Domingo, co-founder and CEO of Securitize.
BUIDL seeks to offer a stable value of $1 per token and pays daily accumulated dividends directly into investors’ wallets in the form of new tokens each month. The Fund invests 100% of its total assets in cash, US Treasuries and repurchase agreements, allowing investors to earn a return while holding the token on the blockchain. Investors can transfer their tokens 24/7/365 to other pre-approved investors. Fund participants will also have flexible custody options allowing them to choose how to hold their tokens.
Early participants in the BUIDL ecosystem include Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks, among other market participants and infrastructure providers in the crypto industry.
BlackRock Financial Management, Inc. will be the investment manager of the Fund and Bank of New York Mellon will serve as custodian of the Fund’s assets and administrator. Securitize will act as a transfer agent and tokenization platform, managing the tokenized shares and reporting on subscriptions, redemptions and distributions of the Funds. Securitize Markets will act as placement agent, making the Fund available to eligible investors. PricewaterhouseCoopers LLP has been appointed auditor of the Fund for the period ending December 31, 2024.
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The Fund will issue shares pursuant to Rule 506(c) of the Securities Act of 1933 and Section 3(c)(7) of the Investment Company Act. The minimum initial investment of the Fund is $5 million.
BlackRock also made a strategic investment in Securitize. As part of this investment, Joseph Chalom, Global Head of Strategic Ecosystem Partnerships at BlackRock, has been appointed to the Securitize Board of Directors.
About BlackRock
BlackRock’s goal is to help more and more people experience financial well-being. As an investor fiduciary and leading financial technology provider, we help millions of people build life-long savings by making investing easier and more affordable. For more information on BlackRock, please visit www.blackrock.com/corporate
About securitization
Securitize, the leader in real-world asset tokenization, drives compliant digitalization of financial assets through next-generation blockchain technology. Securitize, or through its affiliates, is a registered broker-dealer (Member Finra/SIPC) and operates a primary market, alternative trading system, as well as a top 10 transfer agent and has a reporting advisor exemption. Learn more about http://www.securitize.io.
Disclosures
The interests in BUIDL have not been registered with the Securities Exchange Commission under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the requirements of registration. Interests in BUIDL will not be listed on any stock exchange.
Investments in private markets are speculative and considered risky, including the potential loss of your investment, and may not be suitable for all shareholders. Any discussion of liquidity is purely speculative. Past performance does not represent future results.
Securities are offered through Securitize Markets, LLC, (“Securitize Markets”), a registered broker-dealer and member FINRA/SIPC. Neither Securitize Markets nor any of its affiliates provide investment advice or make investment recommendations to any person, and no communication herein or in any other medium should be construed as such. The securities offered by Securitize Markets have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
BUIDL may not be able to maintain a stable value of $1.00 per token at all times. Investments in blockchain-enabled tokens, such as an investment in BUIDL, involve a high degree of risk, including risks that are different from the risks of investing in traditional assets. These risks include, but are not limited to, the risk of regulatory uncertainty, market adoption, market manipulation, market exit, price volatility and security risk and may expose investors to loss of capital. Investments in private placements are also speculative and involve a high degree of risk. Investors must be able to afford to lose their entire investment. Offers to sell or solicitations of offers to buy securities may be made only to qualified investors through formal offering documents containing important information about the risks, fees and expenses associated with the securities concerned. Investors should conduct due diligence and are encouraged to consult a financial advisor, attorney, accountant, tax advisors and any other professionals who can help them understand and evaluate the risks associated with any investment opportunity. Past performance does not represent future results.
BlackRock Financial Management, Inc. (the “Investment Manager”), a Delaware corporation which is an indirectly wholly-owned subsidiary of BlackRock, Inc., is the investment manager of the Fund and is responsible for its investment activities. investment subject to the policies, control and supervision of the Board of Directors of the Fund. The Investment Manager is registered with the United States Securities and Exchange Commission as an investment adviser under the US Investment Advisers Act of 1940, as amended.
In connection with its services as placement agent for BUIDL, the Investment Manager will pay Securitize Markets a cash fee as follows: (i) an initial flat fee and (ii) a quarterly fee for each investor that is introduced to BUIDL by Securitize. Markets are generally a percentage of the average daily net asset value of such investor’s holdings in BUIDL for the applicable calendar quarter, with the initial fee amount to be credited to the quarterly fees.
The compensation paid by the Investment Manager to Securitize Markets for acting as placement agent to BUIDL creates a conflict of interest for Securitize Markets. In particular, the amount of compensation received by Securitize Markets will depend on the number of investors introduced into BUIDL. As a result, Securitize Markets is encouraged to recommend potential investors to invest in BUIDL. Additionally, BlackRock’s investment in Securitize Markets creates a conflict of interest for the Investment Manager.
Securitize Markets or one or more of its affiliates may be a client or investor of BlackRock.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240320771318/en/
Contacts
Media contacts
Black rock: Chantal.DeSoto@blackrock.com, Amanda.Knox@blackrock.com
Securitize: Suzanne.Pinto@securitize.io