Blackrock Aims to Launch Tokenized Investment Fund, Seeks SEC Nod for 'BUIDL' Fund on Ethereum

The globe’s most substantial asset manager by assets under management, Blackrock, has submitted a form to the U.S. Securities and Exchange Commission (SEC) for the initiation of a tokenized investment fund. Additionally, the community has unearthed the development of a token named the “Blackrock USD Institutional Digital Liquidity Fund” or BUIDL on the Ethereum blockchain.

Blackrock Files for ‘BUIDL’ Tokenized Fund With SEC

Blackrock, the leading investment management corporation based in the U.S., is increasingly embracing digital assets. The company introduced a spot bitcoin (BTC) exchange-traded fund (ETF) and has also applied to launch its Ishares Ethereum Trust. Pending U.S. regulatory approval, it aims to list this on the Nasdaq. The formal documentation for the SEC, known as Form D, was officially endorsed by a Blackrock executive on March 14, 2024.
Etherscan reveals the creation of a token dubbed Blackrock USD Institutional Digital Liquidity Fund (BUIDL). A singular address is the holder of 100 BUIDL tokens, issued on March 4, 2024. According to Blackrock’s prospectus, the fund aggregates investments with a minimum entry of $100,000 required for participation. Fundamentally, the Blackrock ICS US Dollar Liquidity Fund operates as a short-term money market fund under the stewardship of this financial behemoth.

Its investment focus is primarily on short-duration securities, including commercial paper, certificates of deposit, and floating rate notes, with a significant portion of its assets held in cash reserves. The approval from the SEC for such initiatives remains a separate concern. The U.S. securities watchdog has been deeply involved in regulatory actions against numerous crypto enterprises. Just two weeks prior, the SEC delayed its verdict on Blackrock’s spot ethereum ETF, a stance it has maintained for similar applications.
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