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BlackRock Confessions: ETFs Are Only a Bridge to Asset Tokenization

BlackRock allegedly establishes a fund to explore the real-word asset tokenization 

According to recent SEC filings, BlackRock, the Wall Street super heavyweight, is teaming up with asset tokenization firm Securitize. Together, they're launching the BlackRock USD Institutional Digital Liquidity Fund, with a focus on tokenizing real-world assets – converting traditional investments into digital formats.

Although the specific assets within the fund's portfolio remain undisclosed, the partnership with Securitize hints at a focus on transforming traditional asset ownership through blockchain technology.

Highlighting the momentum of this new venture, BlackRock CEO Larry Fink remarked in a CNBC interview: 

"The filings for spot Bitcoin and Ether ETFs were stepping stones towards tokenization," 

This initiative follows BlackRock's successful launch of a spot-based Bitcoin ETF earlier, amassing over $15 billion in assets under management and further solidifying its pioneering role in bridging digital and traditional finance sectors.

The future of finance: real-world asset tokenization

The launch of the BlackRock USD Institutional Digital Liquidity Fund has already shown its potential impact. For instance, following the announcement, Ondo Finance's native token, ONDO, witnessed a remarkable uptick, surging 20% and settling at a 12% increase over the past 24 hours, outperforming the broader market. This response underscores the market's optimism toward RWA platforms and their role in the future of finance.

In the backdrop of these developments, a significant movement of $100 million in Circle's USDC stablecoin to a Securitize-related Ethereum address was observed. This move is speculated to be a foundational investment in the fund, showcasing the tangible steps being taken towards actualizing the tokenization vision.