BlackRock Submits SEC Form D for Its First-ever Tokenized Asset Fund
Summary:
BlackRock, the largest global asset manager, has submitted an SEC (Securities and Exchange Commission) Form D for its first tokenized asset fund, BlackRock USD Institutional Digital Liquidity Fund. The fund requests an exemption from certain SEC regulations and asks for a minimum investment of $100,000. It will be tokenized on the Ethereum blockchain and be offered by US digital assets securities firm, Securitize. This comes after BlackRock's spot Bitcoin exchange-traded fund gained SEC approval, with CEO Larry Fink expressing optimism about the future tokenization of financial assets.
BlackRock, the biggest global asset manager, has submitted an SEC Form D for their BlackRock USD Institutional Digital Liquidity Fund to the United States Securities and Exchange Commission. This brings about the inauguration of BlackRock’s maiden tokenized asset fund.
The filing reveals that although BlackRock established the fund back in 2023, it has not been launched yet. Form D is primarily employed to secure various exceptions. BlackRock stated its intention to obtain an exception under Investment Company Act Section 3(c), which would waive specific SEC regulations for them. The fund was legally set up in the British Virgin Islands.
The fund will require a minimum investment of $100,000 and will be presented by Securitize, an American firm specializing in digital asset securities. This company will also supervise the token sales. The form accounts for $525,000 as sales commissions and terms the fund's size as "indefinite." The form got authorized on March 14.
The fund will take on the form of an ERC-20 token coded BUIDL on the Ethereum blockchain. As of now, it has a single holder and an on-chain market value amounting to $0, as per Etherscan. The same source noted a $100 million transfer to the fund on March 4.
BlackRock USD Institutional Digital Liquidity Fund was notable for being among the first spot Bitcoin (BTC) exchange-traded funds to be green-lit by SEC in January. Their CEO, Larry Fink, a cautiously optimistic advocate of BTC, claimed, following the approval of the ETF by Bloomberg: "The subsequent steps would include the tokenization of different financial assets, encompassing every stock, every bond... would all be consolidated on a single ledger."
"Each investor, including you and me, will be assigned our own unique identification number. We could bypass all potential issues regarding unlawful activities connected with bonds, stocks, and digital assets by implementing tokenization," expressed Fink. He further lauded the individualized strategies facilitated by tokenization and immediate settlement.
Securitize is recognized as an alternate trading system and a stock transfer agent by the SEC. The firm has previously tokenized assets on behalf of asset managing firm KKR, as well as the Spanish real estate investment trust Mancipi, amongst others. It has also teamed up with SBI Digital Markets in Singapore, in addition to acquiring cryptocurrency fund manager Onramp Invest, responsible for more than $40 billion's worth of assets under management.
Published At
3/20/2024 12:15:36 AM
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