BlackRock partners with Coinbase for tokenized investment fund

Coinbase has become a major infrastructure provider for the world's largest asset manager – BlackRock's New Blockchain Fund.

This collaboration represents an important step in the integration of traditional finance with blockchain technology, notably through the launch of BlackRock's US Dollar Institutional Digital Liquidity (BUIDL) fund.

BlackRock Enters Tokenization with Announcement of US Dollar Institutional Digital Liquidity Fund (BUIDL)

He gives A declaration BlackRock on Wednesday announced the BUIDL Fund for eligible investors, a unique way to earn US dollar returns via blockchain. Through Securitize Markets, LLC, investors will have access to this new fund. This heralds a change in investment dynamics.

Observers were quick to notice a large $100 million stablecoin transaction on the Ethereum network, likely laying the financial foundation for BUIDL.

Therefore, this event was interpreted as a strong endorsement of the Fund's ability to revolutionize blockchain investment practices.

“This is the latest evolution of our digital asset strategy. We are focused on developing solutions in the digital asset space that help solve real-world problems for our customers,” said Robert Mitchnik, head of digital assets at BlackRock.

Read more: Will the tokenization of real assets become the future of finance?

Tokenization, a major theme of BlackRock's digital asset efforts, promises to bring significant benefits. These benefits include expanded investor access, instant settlements and seamless transfers between platforms. Additionally, BNY Mellon's participation provides a bridge between the digital and traditional financial spheres. This improves the operational liquidity of the fund.

The BUIDL Fund aims to maintain a fixed token value of $1, while providing daily dividends to investors, thus combining the stability and efficiency of blockchain technology. Its investment strategy focuses on safe-haven assets such as U.S. Treasuries, which promise stable returns and flexible token conversion capabilities to investors.

BUIDL's infrastructure is supported by a group of leading companies, including Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks.

The market responded positively to this project, with Coinbase stock rising more than 10% on Wednesday. Additionally, over the past month, the stock is up 48%. This increase actually reflects the market's confidence in the strategic alliance between Coinbase and BlackRock.

She says Coinbase Institutional: “This partnership reflects our commitment to connecting institutions to cryptocurrencies and demonstrates our ability to provide the technology and products needed to support the rapidly growing tokenization industry.

Additionally, Coinbase's involvement in managing BlackRock's bitcoin holdings in the iShares Bitcoin Trust, as well as potential Ethereum Trust offerings, represents a deepening of their partnership.