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Ondo Finance Joins BlackRock’s Tokenized Fund as Inflows Surpass $160 Million
BlackRock, one of the world’s largest asset managers, has seen notable success with its new tokenized money market fund, BUILDThe fund, which records shared ownership on the Ethereum (ETH) blockchain, has attracted more than $160 million in just one week since its inception.
BlackRock BUIDL Fund
According to Bloomberg reportThe BlackRock USD Institutional Digital Liquidity Fund (BUIDL) invests primarily in cash, U.S. Treasuries, and repurchase agreements. The fund rewards its holders with a cryptocurrency, BUIDL, valued at $1 per token.
Shareholders can transfer these tokens to other validated addresses using digital wallets approved by Securitize, BlackRock’s partner for the investment vehicle. The tokenized fund addresses several key use cases, including: finance management for cryptocurrency businesses, support for Treasury bond derivatives and a role as collateral for borrowing and trading, providing an alternative to stablecoins.
It is worth noting that Securitize Markets, an SEC-registered alternative trading system, plays a vital role in facilitating the transfer of tokens between market participants.
As the SEC recently stepped up its oversight of Ethereum’s native token, ETH, Securitize CEO Carlos Domingo emphasizes that investigations should be independent of the underlying blockchain infrastructure. Domingo also points to the proven nature of the Ethereum public blockchain, which provides a “solid foundation” for tokenization activities.
Like before reported According to our sister website, Bitcoinist, BlackRock has become an advocate for cryptocurrencies and tokenization within traditional financial institutions. Chairman and CEO Larry Fink believes that every financial asset will one day be tokenized.
From the company iShares Bitcoin Trust Fund (IBIT) has already attracted more than $13 billion in capital since its launch as an exchange-traded fund (ETF) in January. With the launch of the BUIDL fund, BlackRock continues to demonstrate its commitment to exploring new digital asset solutions.
Ondo Finance to Transfer $95 Million in Assets to BlackRock
Ondo Finance, a platform specializing in tokenized real assets (RWA), has moved $95 million in assets to BlackRock’s BUIDL fund. This strategic transaction allows Ondo Finance to facilitate instant settlements of its US Treasury-backed token, OUSG.
This makes Ondo Finance a major player in the BUIDL ecosystem. According to blockchain researcher Tom Wan, it holds $15 million worth of BUIDL tokens, which, in addition to those above $95 million, will result in a substantial $110 million worth of BUIDL tokens.
The researcher noted that this collaboration further strengthens the market for tokenized US Treasuries, with the potential to reach a value of $1 billion. In its announcement, the team behind the Ondo Finance platform summarized:
We are excited to see BlackRock embrace securities tokenization with the launch of BUIDL, particularly its broad engagement with ecosystem participants. Not only does this further validate our original concept of a tokenized U.S. Treasury fund, it also reinforces our thesis that tokenizing traditional securities on public blockchains represents the next major step in the evolution of financial markets.
At the time of writing, Ondo Finance’s native token, ONDO, is trading at $0.909, up over 4% in the last 24 hours. This positive momentum comes on top of its impressive 115% price uptrend over the last 30 days.
Featured image from Shutterstock, chart from TradingView.com