tl;dr
Securitize, a real-world asset tokenization firm, has announced the launch of conversions between Circle's stablecoin and U.S. dollars for BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). The integration, in collaboration with Zero Hash, aims to reduce investment costs and simplify the ...
Securitize has launched conversions between Circle's stablecoin and U.S. dollars for BlackRock's USD Institutional Digital Liquidity Fund (BUIDL). This move aims to reduce investment costs and simplify the subscription process for traditional finance players. Zero Hash will facilitate the conversion between dollars and digital assets, enabling near-instantaneous and transparent settlement and transfers across platforms.
The BUIDL fund, valued at around $550 million, has grown in popularity as one of the largest tokenized real-world asset funds. It offers immediate settlement, enhanced liquidity, and transparent on-chain transactions. BUIDL has surpassed $375 million in assets under management, allowing institutional investors to earn yields on U.S. dollars through tokenized shares representing investments in secure assets such as U.S. Treasury bills.
The rising sector has seen the emergence of new blockchain-based real-world asset funds. Partnerships like Guggenheim Treasury Services and blockchain firm Zeconomy have launched a digital commercial paper fund. Additionally, firms such as Midas, Ondo Finance, and Mountain Protocol have introduced real-world tokenized products, with BUIDL backing their yield-generating products.
This announcement comes amid a growing interest in tokenized real-world asset funds, especially after the U.S. Securities and Exchange Commission's approval of 11 spot Bitcoin ETFs in January. The integration of stablecoin conversions for BUIDL reflects the ongoing evolution and expansion of the digital asset investment landscape, catering to the needs of institutional investors seeking efficient, transparent, and high-yield opportunities.