- BlackRock forges ahead in the cryptocurrency realm, leading with its Spot Bitcoin ETF while CEO Larry Fink expresses strong confidence in the broader asset class.
- A newly proposed ‘BlackRock USD Institutional Digital Liquidity Fund Ltd.’ aims to democratise investment in high-value assets through tokenisation.
- Minimum investment for the fund is set at $100,000, with Bloomberg highlighting a designated Ethereum wallet for the fund.
BlackRock is establishing itself as somewhat of a crypto trailblazer. While its Spot Bitcoin ETF is taking the lead, its CEO Larry Fink continues to be bullish on the asset class. Now a filing with the US Securities and Exchange Commission (SEC) reveals the deep-dive into crypto continues.
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According to the filing made on 14 March, BlackRock is in the early stages of creating a tokenised asset fund called ‘BlackRock USD Institutional Digital Liquidity Fund Ltd.’
The fund is being launched in cooperation with Securitize, a digital asset management platform with locations across the US as well as Japan and Europe. The technical details of the fund are unclear at present and there is no launch date for the fund currently.
Investors will have to part with a minimum of USD $100,000 (AUD $153,000), according to the filing. Bloomberg reported that an Ethereum wallet was marked for the fund. Neither BlackRock, nor Securitize has issued comments.
BlackRock CEO Believes in Tokenisation
Tokenisation involves transforming the ownership rights of a physical asset into a digital token on a blockchain network. It significantly lowers investment barriers, making high-value assets like real estate and fine art more accessible to a wider audience by dividing them into affordable tokens.
This process enhances liquidity by facilitating easier trades in digital marketplaces and democratises ownership by allowing more people to invest in previously exclusive markets.
Blockchain technology streamlines transactions, reduces costs, and improves transparency and security, while enabling fractional ownership and global access to diverse markets, thus spreading investment risk and opening new opportunities for investors worldwide.
Related: Analyst Expects Extended Downturn in Crypto Market, Top May Be In
BlackRock CEO Larry Fink has in the past voiced his support for tokenisation saying:
Every investor, you and I, will have our own number, our own identification. We could rid ourselves of all issues around illicit activities about bonds and stocks and digital by having a tokenization.
Larry Fink
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