Coinbase has been chosen as a key infrastructure provider for Blackrock’s newly unveiled tokenized investment fund, the crypto exchange has revealed. “This is the latest progression of our digital assets strategy,” said Blackrock’s head of digital assets. “We are focused on developing solutions in the digital assets space that help solve real problems for our clients.”
Coinbase to Work With Blackrock on Tokenized Investment Fund
Blackrock, the world’s largest asset manager, unveiled its first tokenized fund issued on a public blockchain in collaboration with Securitize Markets on Wednesday. The fund is called Blackrock USD Institutional Digital Liquidity Fund (BUIDL).
Coinbase Institutional announced on social media platform X Wednesday that it has been selected to provide key infrastructure for Blackrock’s new fund, stating:
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We are excited to announce that Coinbase has been chosen as a key infrastructure provider for Blackrock and Securitize Tokenized Investment Fund.
“This partnership reflects our commitment to connecting institutions to crypto and demonstrates our ability to provide the necessary technology and products to support the rapidly growing tokenization sector,” Coinbase detailed.
The BUIDL fund will offer qualified investors the opportunity to earn U.S. dollar yields by subscribing on the blockchain through Securitize Markets. “The fund invests 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain,” Blackrock described. “BUIDL seeks to offer a stable value of $1 per token and pays daily accrued dividends directly to investors’ wallets as new tokens each month.”
Coinbase also offers custody services for Blackrock’s bitcoin holdings in the Ishares Bitcoin Trust (IBIT), the world’s largest asset manager’s spot bitcoin exchange-traded fund (ETF). Blackrock has also applied to launch its Ishares Ethereum Trust with the Securities and Exchange Commission (SEC).
Robert Mitchnick, Blackrock’s head of digital assets, also commented on Wednesday:
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This is the latest progression of our digital assets strategy … We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize.
The initial BUIDL ecosystem participants include Anchorage Digital Bank NA, Bitgo, Coinbase, and Fireblocks. Blackrock Financial Management will be the investment manager of the fund and Bank of New York Mellon will serve as the custodian of the fund’s assets and its administrator. Securitize will act as Blackrock’s transfer agent and tokenization platform.
Source: https://news.bitcoin.com/coinbase-to-provide-key-infrastructure-for-blackrocks-tokenized-investment-fund/