BlackRock Accelerates DeFi Integration: BUIDL Fund Now Live on Uniswap
Global asset management titan BlackRock is making a monumental stride into the decentralized finance (DeFi) ecosystem. In a statement released on Wednesday, BlackRock announced a groundbreaking collaboration with Uniswap Labs and digital asset issuance platform Securitize, enabling on-chain trading for its tokenized U.S. Treasury fund, “BUIDL.”
This pivotal integration empowers eligible institutional investors to directly acquire the “BlackRock USD Institutional Digital Liquidity Fund (BUIDL)” through the innovative UniswapX technology.
A Landmark Partnership for On-Chain Trading
UniswapX, an off-chain order routing system developed by Uniswap Labs, is engineered to aggregate market liquidity and facilitate efficient on-chain transaction settlement. The Uniswap ecosystem stands as the world’s largest decentralized exchange by trading volume, operating on an automated market maker (AMM) smart contract model, thereby bypassing traditional intermediaries like banks or brokers.
Transaction execution for BUIDL will be meticulously handled by Securitize Markets. This process leverages a “request for quote (RFQ) mechanism” to connect whitelisted institutional investors, with final settlement occurring on the blockchain via smart contracts.
BlackRock’s Resounding Vote of Confidence in DeFi
Adding further weight to this strategic move, BlackRock has disclosed an investment in the Uniswap ecosystem itself, acquiring an undisclosed quantity of UNI tokens. This move is widely interpreted by the market as the strongest endorsement yet from a traditional financial behemoth for the burgeoning DeFi sector.
The news sent a ripple of excitement through the market, with Uniswap’s governance token, UNI, surging over 20% to reach a peak of $4.36, underscoring the market’s positive reception to BlackRock’s deeper involvement.
BUIDL: A Growing Force in Tokenized Assets
This collaboration marks a significant milestone: BlackRock’s first direct integration of its tokenized products into core DeFi trading infrastructure. BUIDL, issued by Securitize, is a fully collateralized tokenized fund, backed by a robust portfolio of U.S. Treasury bonds and cash equivalents.
As of February 11, BUIDL boasted an impressive Assets Under Management (AUM) of approximately $2.4 billion, solidifying its position as the largest institutional-grade tokenized fund currently operating on public blockchains.
BlackRock’s proactive expansion of BUIDL has been notable, extending its reach to the BNB Chain and Solana. Furthermore, through wrapped versions, BUIDL has integrated with other prominent DeFi protocols such as Euler, significantly broadening the product’s accessibility and utility within the decentralized landscape.
Ensuring Compliance and Accessibility
Securitize, a key partner in this venture, operates with regulated broker-dealer and alternative trading system (ATS) licenses in the United States. The firm is responsible for the compliant issuance and management of the BUIDL fund’s tokenization. Securitize emphasizes that all investors opting to trade via UniswapX must undergo a stringent pre-qualification process and be successfully whitelisted to ensure regulatory adherence.
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