Investors can subscribe through Securitize
Markets, LLC to participate in the fund
BlackRock invests in Securitize to drive
transformation for digital assets infrastructure
BlackRock today unveils its first tokenized fund issued on a
public blockchain, the BlackRock USD Institutional Digital
Liquidity Fund (“BUIDL” or the “Fund”). BUIDL will provide
qualified investors with the opportunity to earn U.S. dollar yields
by subscribing to the Fund through Securitize Markets, LLC.
“This is the latest progression of our digital assets strategy,”
said Robert Mitchnick, 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, and we are excited to
work with Securitize.”
Tokenization remains a key focus of BlackRock’s digital asset
strategy. Through the tokenization of the Fund, BUIDL will offer
investors important benefits by enabling the issuance and trading
of ownership on a blockchain, expanding investor access to on-chain
offerings, providing instantaneous and transparent settlement, and
allowing for transfers across platforms. BNY Mellon will enable
interoperability for the Fund between digital and traditional
markets.
“Tokenization of securities could fundamentally transform
capital markets. Today’s news demonstrates that traditional
financial products are being made more accessible through
digitization. Securitize is proud to be BlackRock’s transfer agent,
tokenization platform and placement agent of choice in digitizing
and expanding access to its investment products,” said Securitize
co-founder and CEO Carlos Domingo.
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. 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.
Investors can transfer their tokens 24/7/365 to other pre-approved
investors. Fund participants will also have flexible custody
options allowing them to choose how to hold their tokens.
The initial ecosystem participants in BUIDL include Anchorage
Digital Bank NA, BitGo, Coinbase, and Fireblocks, among other
market participants and infrastructure providers in the crypto
industry.
BlackRock Financial Management, Inc., 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 a transfer agent and tokenization platform, managing
the tokenized shares and reporting on Fund subscriptions,
redemptions, and distributions. Securitize Markets will act as
placement agent, making the Fund available to eligible investors.
PricewaterhouseCoopers LLP has been appointed as the Fund's auditor
for the period ending December 31, 2024.
The Fund will issue shares pursuant to Rule 506(c) under the
Securities Act of 1933 and Section3(c)(7) of the Investment Company
Act. The Fund’s initial investment minimum is $5 million.
BlackRock has also made a strategic investment in Securitize. As
part of the investment, Joseph Chalom, BlackRock’s Global Head of
Strategic Ecosystem Partnerships, has been appointed to
Securitize’s Board of Directors.
About BlackRock
BlackRock’s purpose is to help more and more people experience
financial well-being. As a fiduciary to investors and a leading
financial technology provider, we help millions of people build
savings that serve them throughout their lives by making investing
easier and more affordable. For additional information on
BlackRock, please visit www.blackrock.com/corporate
About Securitize
Securitize, the leader in tokenizing real-world assets, is
driving the compliant digitization of financial assets through
next-generation blockchain technology. Securitize, or through its
subsidiaries, is a registered broker-dealer (member Finra / SIPC)
and operates a primary marketplace, an alternative trading system,
as well as a top 10 transfer agent and has an exempt reporting
adviser. Learn more at http://www.securitize.io.
Disclosures
Interests in BUIDL have not been registered with the Securities
Exchange Commission under the Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements. Interests in BUIDL will not be listed on any
exchange.
Private market investments are speculative and considered risky,
including potential loss of your investment, and may not be
appropriate for every shareholder. Any discussion of liquidity is
purely speculative. Past performance is not indicative of future
results.
Securities are offered through Securitize Markets, LLC,
(“Securitize Markets”) a registered broker-dealer and member
FINRA/SIPC. Neither Securitize Markets, nor any of its affiliates
provide any investment advice or make any investment
recommendations to any persons, ever, and no communication through
herein or in any other medium should be construed as such.
Securities offered by Securitize Markets have not been registered
under the Securities Act of 1933 and may not be offered or sold in
the United States absent registration or an applicable exemption
from registration requirements.
BUIDL may not be able to maintain a stable value of $1.00 per
token at all times. Investments in tokens using blockchain, such as
an investment in BUIDL, involve a high degree of risk, including
risks that are different from the risks of investing in traditional
assets. These risks include, but are not limited to, risk of
regulatory uncertainty, market adoption, market manipulation,
market exiting, price volatility and security risk and may expose
investors to loss of principal. Investments in private placements
are also speculative and involve a high degree of risk. Investors
must be able to afford the loss of their entire investment. Offers
to sell, or the solicitations of offers to buy any security can
only be made to qualified investors through official offering
documents that contain important information about risks, fees and
expenses associated with the applicable securities. Investors
should conduct their own due diligence and are encouraged to
consult with a financial advisor, attorney, accountant, tax
advisors, and any other professional that can help them to
understand and assess the risks associated with any investment
opportunity. Past performance is not indicative of future
results.
BlackRock Financial Management, Inc. (the “Investment Manager”),
a Delaware corporation that is an indirectly wholly-owned
subsidiary of BlackRock, Inc., is the investment manager of the
Fund and is responsible for its investment activities subject to
the policies, control and supervision of the board of directors of
the Fund. The Investment Manager is registered with the U.S.
Securities and Exchange Commission as an investment adviser under
the U.S. Investment Advisers Act of 1940, as amended.
In connection with its services as placement agent for BUIDL,
the Investment Manager will pay to Securitize Markets cash
compensation as follows: (i) an upfront flat fee and (ii) a
quarterly fee with respect to each investor who is introduced to
BUIDL by Securitize Markets generally equal to a percentage of the
average daily net asset value of such investor’s interests in BUIDL
for the applicable calendar quarter, with the amount of the upfront
fee to be credited against the quarterly fee.
The compensation paid by the Investment Manager to Securitize
Markets for acting as placement agent to BUIDL creates a conflict
of interest for Securitize Markets. In particular, the amount of
compensation received by Securitize Markets will depend on the
number of investors that are introduced to BUIDL. As a result,
Securitize Markets is incentivized to recommend that prospective
investors invest in BUIDL. In addition, BlackRock’s investment in
Securitize Markets creates a conflict of interest for the
Investment Manager.
Securitize Markets or one or more of its affiliates may be a
BlackRock client or investor.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240320771318/en/
Media Contacts BlackRock: Chantal.DeSoto@blackrock.com,
Amanda.Knox@blackrock.com Securitize:
Suzanne.Pinto@securitize.io
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