Asset management giant BlackRock has recently announced its selection of Coinbase as the key infrastructure provider for its new tokenized investment fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund, as stated by BlackRock, aims to maintain a stable value of $1 per token and distribute daily accrued dividends directly to investors’ wallets in the form of new tokens each month. The fund will invest 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, allowing investors to earn yield while securely holding the token on the blockchain. This initiative was developed in partnership with the tokenization company Securitize, showcasing a collaborative effort to innovate within the digital asset space.
In a public statement released on March 21, Coinbase confirmed its role as an infrastructure provider for the BUIDL fund. While specifics regarding this role were not disclosed by the crypto exchange, the partnership was hailed as a significant milestone in providing technological support for traditional institutions venturing into the crypto industry. Coinbase emphasized its dedication to facilitating the connection between institutions and crypto, underscoring its ability to deliver the necessary technology and products to bolster the swiftly expanding tokenization sector.
It is worth noting that Coinbase already maintains a substantial business relationship with BlackRock, acting as the custodian for the asset management firm’s flagship spot Bitcoin exchange-traded fund (ETF) product, IBIT. Furthermore, other prominent institutions such as BNY Mellon, crypto infrastructure provider Fireblocks, Anchorage Digital Bank, and digital assets trust company BitGo are also engaged in the BUIDL fund. On-chain data reveals that an Ethereum wallet linked to BlackRock’s BUIDL fund has garnered significant donations from various members of the crypto community. The wallet, identified by blockchain intelligence platform Arkham Intelligence, has received over $50,000 worth of memecoins and non-fungible token donations, showcasing a diverse range of digital assets in its portfolio. Currently, the total value of assets in the wallet stands at an impressive $100.05 million, underscoring the growing interest in tokenization and digital asset management.
The collaboration between BlackRock and Coinbase for the BUIDL fund exemplifies a strategic partnership aimed at revolutionizing the digital asset landscape. By leveraging the expertise and technological capabilities of both entities, the fund is poised to offer investors a secure and transparent platform to participate in the burgeoning tokenization sector. As the crypto industry continues to evolve, partnerships like these pave the way for traditional institutions to embrace the potential of blockchain technology and digital assets.