BlackRock, the largest asset manager in the world, has filed a Form D with the United States Securities and Exchange Commission (SEC) for its BlackRock USD Institutional Digital Liquidity Fund. This marks the introduction of BlackRock’s inaugural asset fund that is tokenized.
According to the filing, BlackRock established the fund in 2023 but has not yet launched it. Form D is used to obtain exemptions, and BlackRock specified that it is seeking an exemption under the Investment Company Act Section 3(c), which exempts it from certain SEC regulations. The fund was created under the jurisdiction of the British Virgin Islands.
Securitize, a digital assets securities firm based in the United States, will offer the fund with a minimum investment of $100,000. Securitize will also handle the token sale. The form reveals $525,000 in sales commissions and describes the fund’s size as “indefinite.” The form was signed on March 14.
The fund will be tokenized on the Ethereum blockchain using an ERC-20 token called BUIDL. Currently, BUIDL has one holder and an on-chain market cap of $0, according to Etherscan. The website also shows that the fund received a transfer of $100 million on March 4.
BlackRock gained SEC approval for its spot Bitcoin exchange-traded fund (BTC) in January, making it one of the first to do so. CEO Larry Fink, who generally holds a positive view on BTC with some reservations, expressed his thoughts to Bloomberg shortly after the ETF approval. Fink stated, “Every investor, including you and I, will have our own number, our own identification. We could eliminate all concerns about illicit activities related to bonds, stocks, and digital assets by having tokenization.” He went on to commend customization strategies through tokenization and instant settlement.
Securitize is registered as a stock transfer agent and alternative trading system with the SEC. The firm has tokenized assets for asset manager KKR and Spanish real estate investment trust Mancipi. Additionally, it has formed a partnership with SBI Digital Markets in Singapore and acquired Onramp Invest, a cryptocurrency fund manager with over $40 billion in assets under management.
In conclusion, blockchain technology is revolutionizing the real estate market, one block at a time.