BlackRock, a world leader in asset management and investment management services, will launch its first fund structured on the tokenization of real assets (RWA) issued on a public blockchain. The BUILD Fund stands for BlackRock USD Institutional Digital Liquidity Fund and will offer qualified investors the opportunity for US dollar returns by subscribing to the Fund through Securitize Markets, LLC.
“This is the latest advancement in our digital assets strategy,” said Robert Mitchnick, head of digital assets at BlackRock. “We are focused on developing digital asset solutions that help solve real problems for our customers and are excited to work with Securitize.”
Tokenization remains a key focus of BlackRock’s digital asset strategy. Through tokenization of the Fund, BUIDL will offer investors significant benefits by enabling the issuance and trading of properties on a blockchain, expanding investor access to on-chain offerings, providing instant and transparent settlement, and enabling cross-platform transfers. BNY Mellon will enable interoperability for the Fund between digital and traditional markets.
“Tokenization of securities could fundamentally transform capital markets. Today’s news shows that traditional financial products are becoming more accessible through digitalisation.
Securitize co-founder and CEO Carlos Domingo expressed great satisfaction with Blackrock’s choice to use Securitize as a tokenization platform and placement agent in the digitization and expansion of 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 accrued dividends directly to investors’ wallets as new tokens every month. The Fund invests 100% of its total assets in cash, US Treasury bills and repurchase agreements, allowing investors to earn yield by 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 that allow them to choose how to store 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 cryptocurrency space.
BlackRock Financial Management, Inc. will serve as the investment manager of the Fund and Bank of New York Mellon will serve as custodian of the Fund’s assets and as administrator. Securitize will act as a transfer agent and tokenization platform, managing the tokenized shares and reporting 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 as the Fund’s auditor for the period ending 31 December 2024.
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 Fund’s minimum initial investment is $5 million.
BlackRock also made a strategic investment in Securitize. As part of the investment, Joseph Chalom, global head of strategic partnerships for ecosystems at BlackRock, was appointed to the board of directors of Securitize.
Managing Director of Credit Village, Roberto Sergio has more than 20 years of experience in NPL and distressed debt in the Italian and International market. He is the editor of the NPL column in Credit Village Magazine and the director of Credit Village's National NPL Market Observatory.