The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), accessible through Securitize Markets, LLC, is the company’s first tokenized fund. Robert Mitchnick, BlackRock’s head of digital assets, indicated that the action is consistent with the company’s digital assets strategy, which focuses on finding answers to client challenges.
BUIDL provides investors with access to on-chain products, while blockchain technology allows for transparent settlement. BNY Mellon can enable transactions between digital and conventional marketplaces.The $1 currency issued by BUIDL has a fixed value and is delivered to investors’ digital wallets on a daily basis as dividends.
With the tokens maintained on the blockchain, the fund concentrates on yield-generating investments such as cash, US Treasury notes, and repurchase agreements. Investors can send tokens at any time of year, and there are tailored custody choices available. BitGo, Coinbase, Fireblocks, and Anchorage Digital Bank NA are among the early ecosystem partners.
Black Rock Financial Management I.C. administers the funds, and Bank of New York Mellon serves as trustee. Securitize uses it as a tokenization platform and transfer agent, ensuring that distributions, redemptions, and subscriptions occur simultaneously.
PricewaterhouseCoopers LLP is listed as the fund’s auditor in the prospectus (2020).
BUIDL shares have an initial share value of $5 million and are traded under Section 3(c)(7) and Rule 506(c). BlackRock has reappointed Securitize managing director Joseph Chalom to the board of directors.
