Bankless BUIDL: Blackrock's $10T Bet on Ethereum | Carlos Domingo
Apr 2, 2024
Carlos Domingo, Founder and CEO of Securitize, has been pivotal in launching BlackRock's first tokenized fund on Ethereum. In this engaging conversation, he discusses how this fund symbolizes a significant shift in traditional finance, enabling tokenized treasuries and securities. They explore the innovative features of on-chain dividends, the implications of tokenization for investment ease, and prospects for stable tokens. Domingo also shares insights on the integration of institutional finance with blockchain technology and the future landscape of asset management.
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New Fund, Not Tokenized Assets
- BlackRock's BUIDL fund, launched on Ethereum, is a new fund designed for tokenization.
- This differs from simply tokenizing existing assets, marking a deliberate step into on-chain finance.
BUIDL Fund Composition
- The BUIDL fund consists of overnight repos and three-month treasuries, offering a yield comparable to the Fed rate.
- It functions as a cash equivalent, providing a return on assets similar to a money market fund.
Yield Distribution Mechanism
- The BUIDL token is a stable-value security, not a stablecoin, representing one unit of the fund.
- Yield is distributed monthly as additional BUIDL tokens airdropped to holders' wallets.