BlackRock Choose Coinbase for Tokenized Fund Infrastructure

• BlackRock has picked Coinbase as a crucial infrastructure provider for its newly launched tokenized investment fund.
• Blackrock launched its first tokenized investment fund, named BUIDL, on March 20th. 

Coinbase, a leading crypto exchange, has been selected as a crucial infrastructure provider for BlackRock’s latest tokenized investment fund, according to announcements made by the exchange. 

We are excited to announce that Coinbase has been chosen as a key infrastructure provider for @BlackRock and @Securitize Tokenized Investment Fund.

— Coinbase Institutional (@CoinbaseInsto) March 20, 2024

BlackRock, the world’s largest asset manager, unveiled its first tokenized investment fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), in collaboration with Securitize Markets on Wednesday. This groundbreaking fund, issued on a public blockchain, aims to provide qualified investors with an opportunity to earn U.S. dollar yields through blockchain subscriptions.

The BUIDL fund recognizes itself by investing 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements. This strategy allows investors to earn yields while securely holding tokens on the blockchain. Moreover, the fund is designed to maintain a stable value of $1 per token and distribute daily accrued dividends directly to investors’ wallets.

Further, Coinbase’s involvement extends beyond just infrastructure provision. The renowned crypto exchange also offers custody services for BlackRock’s bitcoin holdings in the Ishares Bitcoin Trust (IBIT), which is the world’s largest asset manager’s spot bitcoin exchange-traded fund (ETF). 

Additionally, BlackRock has submitted an application to the Securities and Exchange Commission (SEC) for the launch of its Ishares Ethereum Trust, further signaling its commitment to embracing digital assets.