- Over $1B in US Treasurys have now been tokenized on-chain，MAR 28, 2024
- BlackRock begins asset tokenization with launch of digital liquidity fund，MAR 19, 2024
- Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency，MAR 19, 2024
BlackRock begins asset tokenization with launch of digital liquidity fund
... “the next step forward” toward a single ledger, instantaneous settlement and ending illicit activities ...
BlackRock, the world’s largest asset manager, has filed a United States Securities and Exchange Commission Form D for the BlackRock USD Institutional Digital Liquidity Fund.
This marks the launch of BlackRock’s first tokenized asset fund.
According to the filing, BlackRock created the fund in 2023 but has yet to launch it.
Form D is used to obtain various exemptions.
BlackRock indicated that it is seeking an exemption under the Investment Company Act Section 3(c), which exempts it from certain SEC regulations.
The fund was created under the jurisdiction of the British Virgin Islands.
The fund will have a $100,000 minimum investment and be offered by Securitize, a U.S. digital assets securities firm, which will also conduct the sale of the tokens.
The form shows $525,000 in sales commissions and indicates the size of the fund as “indefinite.”
The form was signed on March 14.
The fund will be tokenized on the Ethereum blockchain with an ERC-20 token called BUIDL, which currently has one holder and a $0 on-chain market capitalization, according to Etherscan.
That website also indicated that the fund received a transfer of $100 million on March 4.
“We believe the next step going forward will be the tokenization of financial assets, and that means every stock, every bond […] will be on one general ledger. Every investor, you and I, will have our own number, our own identification. We could rid ourselves of all issues around illicit activities about bonds and stocks and digital by having a tokenization. ” ~ BlackRock CEO, Larry Fink
About Securitize
Securitize is registered as a stock transfer agent and alternative trading system with the SEC.
It has tokenized assets for asset manager KKR and Spanish real estate investment trust Mancipi, as well as formed a partnership with SBI Digital Markets in Singapore and bought cryptocurrency fund manager Onramp Invest, which had over $40 billion in assets under management.
https://cointelegraph.com/news/blackrock-begins-asset-tokenization-launch-digital-liquidity-fund
Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency
Swiss-based global digital asset banking group Sygnum will invest $50 million in the Fidelity Institutional Liquidity Fund on behalf of its client Matter Labs.
Those funds will be tokenized as the first step in Matter Labs’ long-term strategy to move all of its treasury reserves on-chain with institutional custodians.
The funds will be tokenized onto the Ethereum-based zkSync layer-2 blockchain, which Matter Labs curates.
The tokenized funds will represent part of Matter Labs’ holdings in the Fidelity Institutional Liquidity Fund, an open-ended $6.3-billion umbrella for money-market funds that is domiciled in Ireland.
The funds are intended to provide transparency for Matter Labs’ proof of reserves.
"Moving USD 50m of our treasury reserves onto the zkSync blockchain showcases its institutional-grade security as well as our commitment to transparency.” ~ Matter Labs senior vice president of business and operations Marco Cora
This is the first time Sygnum has tokenized traditional securities.
The zkSync blockchain was founded in 2018 to provide scalability to Ethereum DApps. Its public mainnet was launched in April 2023 after receiving $200 million in Series C funding in November 2022. It reached a high of $870 million in total value locked (TVL) on March 10 and had $715 million TVL on March 19, according to L2BEAT.
Sygnum claimed to be the first bank to tokenize its own assets in 2020. It began offering its clients access to cryptocurrency staking the same year, beginning with Internet Computer and Tezos, adding Ether the following year and Cardano in 2022.
The Sygnum Singapore subsidiary of the bank received a Major Payment Institution license in October 2023, allowing it to offer crypto brokerage services to accredited investors and institutions. Sygnum does not accept United States clients.
https://cointelegraph.com/news/sygnum-bank-tokenize-50-m-matter-labs-reserves-transparency
Over $1B in US Treasurys have now been tokenized on-chain
More than $1 billion worth of United States Treasurys now exist across Ethereum, Polygon, Solana, and other blockchains, helped in part by the recent launch of the BlackRock USD Institutional Digital Liquidity Fund.
BlackRock’s product, tickered “BUIDL,” was launched on Ethereum on March 20 and now boasts a market cap of $244.8 million.
According to Etherscan, four transactions to the fund totaling $95 million over the week added a boost to the fund, making it the second largest tokenized government securities fund.
BUIDL now only trails Franklin Templeton’s 11-month-old Franklin OnChain U.S. Government Money Fund (FOBXX), which has $360.2 million in U.S. Treasurys
The dashboard shows that $1.08 billion in U.S. Treasurys have now been tokenized across 17 products.
The most recent $79.3 million deposit to BlackRock’s fund was made by real-world asset tokenization firm Ondo Finance, which will allow instant settlements for its own U.S. Treasury-backed token, OUSG. The firm made a total of $95 million in deposits across four transactions, according to Etherscan.
BUIDL’s price is pegged 1:1 with the United States dollar and pays daily accrued dividends directly to investors each month.
It was launched on Ethereum via the Securitize protocol.
BlackRock CEO Larry Fink recently voiced that capital markets could be made more efficient by blockchain tokenization, which Boston Consulting Group estimates will become a *$16 trillion market by 2030*.
Ethereum also accounts for $700 million of all real-world assets (RWA) tokenized on-chain.
WisdomTree another large asset management firm tokenizing RWAs, while *Ondo Finance, Backed Finance, Matrixdock, Maple Finance and Swarm are among the blockchain-native firms operating in the space*.
https://cointelegraph.com/news/us-treasurys-tokenized-on-chain-hit-1-billion
