Circle Enables BUIDL Share Transfer to USDC with New Smart Contract Feature
Summary:
Circle, the firm behind the USDC stablecoin, has introduced a smart contract feature allowing BlackRock USD Institutional Digital Liquidity Fund (BUIDL) shares to be transferred to its digital currency. Launched by BlackRock in March 2024, BUIDL is a tokenized fund on the Ethereum blockchain. It offers U.S. dollar yields via tokenization with tokens representing shares in the fund. BlackRock also runs the fastest-growing spot Bitcoin (BTC) exchange-traded fund (ETF) in the US. Circle CEO Jeremy Allaire noted the growing importance of asset tokenization, emphasizing how USDC simplifies transactions and reduces costs.
In a recent development, Circle, the firm behind the prominent stablecoin USDC (USDC), has now made it possible for transfers of BlackRock USD Institutional Digital Liquidity Fund (BUIDL) shares to its digital currency. On the 11th of April, Circle officially introduced a new smart contract feature, enabling BUIDL share owners to swap their shares for USDC with Circle. This smart contract allows a hassle-free transfer on the secondary market of BUIDL shares for USDC to Circle. As per the announcement, the smart contract will provide a near-instant off-ramp feature for BUIDL that operates continuously for investors. The BlackRock-launched BUIDL, introduced in March 2024, is a tokenized fund powered by the Ethereum blockchain that offers U.S. dollar yields via tokenization. Investors can buy tokens that represent shares in the fund, which invests in items like U.S. Treasury bills. The fund is dubbed the "digital liquidity fund," as it's digitized in token form on the Ethereum blockchain and functions as an ERC-20 token named BUIDL. BlackRock, also responsible for the fastest-growing spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States, introduced this novel investment tool marking its first tokenized fund. Jeremy Allaire, Circle's CEO and co-founder, noted that the tokenization of real-world assets is a rapidly emerging product category. He added that using USDC means investors can swiftly liquidate tokenized assets, thereby saving costs and simplifying transactions. This news is still in progress, and more details will be shared as they arise.
Published At
4/11/2024 4:29:08 PM
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