Blackrock
- The largest asset manager in the world, with an estimated 9 Trillion Dollars US in assets under management.
- Previous achievements include the first Bitcoin Spot ETF
- Photo Credit
- The CEO has gone on record stating that the true value of blockchain technology lies in it's ability to allow real word assets to be represented on a blockchain by tokens and thus trade efficiently and transparently in a safe, trustless environment, with little to no resistance to trade and movement.
- He also touted the transparency as a solution to fraud, waste and corruption.
What are Treasury Bonds
- One of the worlds most saught after investments denominated in U.S. Dollars, the global reserve currency. Paying a conservative yield of around 5.5% APR now.
What did Blackrock do?
- They invested 100 Million USD in purchasing Treasury Bonds, creating a platform where the treasuries were represented by tokens they minted. And these tokens were then offered for sale to a whitelist of 10,000 qualified investors, who bought these tokens in portions of 5 Million U.S. Dollars.
- Then Blackrock designed a smart contract which harvests the monthly yield and automaically sends it to the wallets which hold these tokens.
- This is the very definition of tokenizing real world assets, and this huge first occurrence may open the flood gates for many more such occurrences. After all Blackrock is making a lot of money doing this, so why stop there?
- See News stories:
The newly created BlackRock USD Institutional Digital Liquidity Fund (BUIDL) was launched in conjunction with Securitize, according to the Notice of Exempt Offering of Securities filed with the SEC last week. BlackRock’s recently deployed $100 million Ethereum-based investment fund has prompted a meme-fuelled on-chain response from the crypto community. The investment behemoth’s move into decentralized finance (DeFi) follows a wildly successful bitcoin ETF launch and echoes CEO Larry Fink’s previous comments that ETFs are “just stepping stones towards tokenization.”
- See side stories
Another irony is the name: BUIDL a deliberate mis-spelling of the word Build. BUIDL is a warping of the word “build” in the same fashion as “HODL.” BUIDL is a call to arms for building and contributing to the blockchain and cryptocurrency ecosystem, instead of passively holding.
Historic First??
- No. This is not the first time someone has sold cryptocurrency tokens as a representation of real world assets, but it is a historic occurrence in terms of size and in terms of who is doing it.
- If John Smith wears Purple Nike Running shoes, that is one thing. But if Soccer Star Lionel Messi or Cristiano Ronaldo wear purple Nike running shoes, it is a completely different thing.
Retail Traders can get in on the Secondary sales market
- Lastly you should know that although you may not be on the WHitelist of 10,000 Qualified Investors who purchased 5 million dollar tranches or portions of these Tokens, they can be sold on a secondary market to non-qualified buyers in much smaller portions.
- This means anyone with access to the Ethereum blockchain and Ether the asset can buy these tokens and take part in this economy.
- That means everybody, all over the world can buy these tokens and have U.S Treasuries in their investment portfolio.
We are living through history
- Real World Assets on the blockchain. This is something people have talked aboiut, wrote about and executed on a smaller scale for over ten years. But now the Giant of the Asset Management Sector BlackRock has entered this financial niche we can expect it to explode.
- You are living through history right now, historic things are happening, and not everyone is aware of it. The world is being transformed by this new technology.
The End
About me.
I am a writer who has focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance for over six years. But I also like to write about life, my garden, my island home and other stuff.
Hive Blockchain
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