In a significant move, asset management firm BlackRock has chosen Coinbase as the key infrastructure provider for its new tokenized investment fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund aims to maintain a stable value of $1 per token and distribute daily accrued dividends directly to investors’ wallets as new tokens each month. By investing 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, the fund offers investors the opportunity to earn yield while holding the token on the blockchain.
Developed in collaboration with tokenization company Securitize, the BUIDL fund marks BlackRock’s foray into the digital asset space. Coinbase, in a statement on X (formerly Twitter) on March 21, announced its role as an infrastructure provider for the fund. Despite the lack of specific information on the nature of this role, Coinbase emphasized the partnership as a testament to its commitment to facilitating traditional institutions’ entry into the crypto industry. The company highlighted its capability to provide the technological support necessary for the growing tokenization sector.
Coinbase’s association with BlackRock extends beyond the BUIDL fund, as the crypto exchange also serves as the custodian for the asset management firm’s flagship spot Bitcoin exchange-traded fund (ETF) product, IBIT. Moreover, various other institutions such as BNY Mellon, crypto infrastructure provider Fireblocks, Anchorage Digital Bank, and digital assets trust company BitGo are involved in the fund. These partnerships underscore the collaborative efforts of key players in the industry to bridge the traditional financial world with the emerging crypto landscape.
Community Engagement and On-Chain Data
An interesting aspect revealed by on-chain data is the significant donations received by an Ethereum wallet associated with BlackRock’s BUIDL fund. According to blockchain intelligence platform Arkham Intelligence, the wallet received over $50,000 worth of memecoins and non-fungible token donations from members of the crypto community. These donations encompass a range of digital assets, from well-known tokens like PEPE to lesser-known coins like ROCK and GAINS. At present, the total value of assets in the wallet amounts to $100.05 million, indicating substantial community engagement and support for the fund.
BlackRock’s selection of Coinbase as its infrastructure provider for the BUIDL fund represents a strategic partnership aimed at driving innovation and growth in the digital asset space. The collaboration not only demonstrates Coinbase’s technological capabilities but also underscores the increasing integration of traditional financial institutions with blockchain-based solutions. Moving forward, the success of this partnership may pave the way for further collaborations and advancements in the tokenization sector.
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