BlackRock’s inaugural tokenized fund now allows USDC transfers with Circle’s support

Circle, the issuer of the popular stablecoin USDC, has introduced a new feature that allows holders of BlackRock USD Institutional Digital Liquidity Fund (BUIDL) shares to transfer them to USDC. The smart contract functionality developed by Circle enables seamless transfers of BUIDL shares for USDC on the secondary market, providing investors with a convenient and fast off-ramp. BUIDL, launched by BlackRock in March 2024, is a tokenized fund that operates on the Ethereum blockchain, offering U.S. dollar yields through tokenization. Investors can purchase tokens representing shares in the fund, which invests in assets like U.S. Treasury bills. This innovative fund, referred to as the “digital liquidity fund,” operates as an ERC-20 token called BUIDL. Circle’s CEO, Jeremy Allaire, highlighted the importance of asset tokenization and how USDC facilitates the movement of assets, reducing costs and eliminating friction for investors. BlackRock, a major player in the cryptocurrency industry, is also the operator of the fastest-growing spot Bitcoin exchange-traded fund (ETF) in the United States. This collaboration with Circle is a continuation of their longstanding partnership, as Circle has been investing in the Circle Reserve Fund managed by BlackRock since 2022. The Circle Reserve Fund is a government money market fund that holds cash and short-dated U.S. Treasuries.