Asset management company BlackRock is launching a tokenized digital asset fund, a new SEC filing on Tuesday shows. In turn, BlackRock seeded the fund by depositing $100 million in USDC stablecoin on the Ethereum Network.
The BlackRock USD Institutional Digital Liquidity Fund was incorporated in the British Virgin Islands and will be launched in partnership with Securitize, a tokenization firm. According to wallet data from Etherscan, BlackRock deposited Circle’s USDC stablecoin into a wallet on the Ethereum Network.
BlackRock is continuing its journey into the digital asset industry following its Spot Bitcoin ETF launch earlier this year. The company’s Bitcoin ETF has been one of the best-performing Bitcoin products out of the field of new launches in 2024. Additionally, BlackRock also has a pending application for a spot Ethereum ETHER (ETH) ETF, which the SEC is putting off approval of.
BlackRock Continues Its Mission For Tokenization
In a January interview with CNBC, BlackRock CEO Larry Fink said that BTC and ETH ETFs “are just stepping stones towards tokenization, and I really do believe this is where we’re going to be going.” Now, we are seeing the asset manager shift towards tokenization with a major step.
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Furthermore, BlackRock’s digital asset fund also represents a major milestone for the tokenization of real-world assets. Tokenization is a growing sector in the intersection of digital assets and traditional finance. It involves placing traditional assets on blockchain rails in pursuit of faster settlements and higher efficiency.