BlackRock's Tokenized Fund Gets USDC Cash-Out Option Via Circle Integration

Zinger Key Points
  • This new feature allows BUIDL investors to instantly convert fund shares into USDC, offering 24/7 liquidity access.
  • Jeremy Allaire of Circle emphasized the benefits of blockchain in reducing costs and friction in digital transactions.

Investors in BlackRock’s history-making tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), now have a way to quickly and easily convert their holdings into USDC/USD stablecoin, thanks to a new collaboration between BlackRock BLK and Circle Inc.

What Happened: The stablecoin issuer on Thursday announced the development of a smart contract specifically designed for BUIDL.

This innovative technology allows BUIDL investors to seamlessly trade their fund shares for USDC, essentially “cashing out” their investment 24/7 in a near-instantaneous process.

“This is a significant step forward for the entire tokenized asset ecosystem,” said Jeremy Allaire, CEO of Circle.

“While tokenization unlocks exciting investment opportunities, ensuring easy and efficient exits is crucial for broader adoption. USDC’s integration with BUIDL exemplifies the power of stablecoins in bridging the gap between traditional and digital finance.”

Launched in March 2024, BUIDL marked a watershed moment in the evolution of tokenized assets.

The fund invests in cash equivalents like U.S. Treasury bills and offers investors exposure to these assets through tradable digital tokens.

Circle’s smart contract removes a major hurdle for BUIDL investors by enabling a frictionless transfer of their holdings into USDC, a trusted and transparent dollar-pegged digital currency.

Investment behemoth BlackRock has emerged as a significant force in the cryptocurrency space. The firm’s iShares Bitcoin Trust IBIT, launched in January 2024, was one of the first spot Bitcoin ETFs to receive approval from the U.S. Securities and Exchange Commission.

With holdings exceeding 266,580 BTC (valued at roughly $18.5 billion as of April 10), IBIT highlights BlackRock’s commitment to providing investors with exposure to this emerging asset class.

Also Read: Ethereum: A Deflationary Store of Value with Dividend Payouts?

What’s Next: Benzinga’s upcoming Future of Digital Assets conference, scheduled for November 19th, 2024, is poised to be a key forum for industry leaders to discuss these critical issues.

Experts from across the financial spectrum will convene to explore the latest advancements in tokenization, stablecoins, and the evolving regulatory landscape.

This conference presents a valuable opportunity to gain insights into the future of digital assets and the role they will play in reshaping the global financial system.

Read Next: Bitwise CIO: Bitcoin’s Rise Isn’t Just Hype — Real-World Use Cases Are Surging

Photo: Shutterstock

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