BlackRock tokenized BUIDL fund now convertible to USDC 24/7 via Circle integration

Circle, the issuer of USDC, announced a new smart contract functionality that allows holders of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) to transfer their shares to Circle for USDC. As reported by Circle, this smart contract provides BUIDL investors with a near-instant, 24/7 off-ramp, leveraging the core benefits of tokenized assets: speed, transparency, and efficiency.

Jeremy Allaire, Co-founder and CEO of Circle, emphasized this development’s significance, stating,

“Tokenization of real-world assets is a rapidly emerging product category. Tokenizing assets is but one important dimension of solving investor pain points. USDC enables investors to move out of tokenized assets at speed, lowering costs and removing friction.

We’re thrilled to provide this functionality to BUIDL investors and deliver the core benefits of blockchain transactions via USDC availability to investors.”

BlackRock’s BUIDL fund, officially named the BlackRock USD Institutional Digital Liquidity Fund, represents a significant foray by the world’s largest asset manager into the realm of blockchain and digital assets. Launched in partnership with Coinbase, BUIDL is a blockchain-based investment fund designed to offer US dollar yields through tokenization, marking a notable step in integrating traditional finance with blockchain technology. The fund leverages US$100 million in USDC stablecoin transactions and is supported by a consortium of firms, including Anchorage Digital Bank NA, BitGo, Fireblocks, and Coinbase.

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BlackRock’s BUIDL attracted $240 million in its first week of operations. Arkham Intel’s real-time data suggests that BUIDL’s Ethereum address has a balance above $100 million, primarily consisting of USDC that seeded the fund, with a small portion coming from community donations.

BlackRock launched the fund on the Ethereum blockchain on March 19, as indicated in a regulatory filing, with a public announcement on March 20 stating that the fund tokenizes assets in the form of the BUIDL token. The fund invests 100% of its assets in cash, US Treasury bills, and repurchase agreements, making it the “first tokenized fund issued on a public blockchain,” according to BlackRock.

Circle’s smart contract functionality enables the frictionless transfer of BUIDL shares for USDC on the secondary market. It provides a trusted and transparent method for users looking to sell their BUIDL shares while remaining holders of digital dollars. This development marks a significant step towards the tokenization of financial markets, offering a glimpse into the future of global finance while providing a secure, efficient, and compliant way for institutional investors to engage with digital assets.

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Author: Liam ‘Akiba’ Wright

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