The world’s largest asset manager, BlackRock, has filed Form D with the United States Securities and Exchange Commission (SEC) for its first tokenized asset fund, the BlackRock USD Institutional Digital Liquidity Fund.
For the BlackRock USD Institutional Digital Liquidity Fund, the largest asset manager in the world, BlackRock, has filed Form D with the United States Securities and Exchange Commission (SEC). This signifies the inaugural tokenized asset fund offering by BlackRock.
BlackRock established the fund in 2023 but has not yet initiated its operations, as stated in the filing. To qualify for various exemptions, utilize Form D.
BlackRock noted that it requests an exemption from specific SEC regulations under Section 3(c) of the Investment Company Act. The fund’s establishment occurred within the British Virgin Islands‘ legal framework.
Securitize, a U.S.-based digital assets securities firm, will host the fund and facilitate the sale of the tokens. A minimal investment of $100,000 will be required to participate. The form delineates sales commissions amounting to $525,000 and designates the fund’s magnitude as “indefinite.” The signature appeared on the form on March 14.
The fund will undergo tokenization on the Ethereum blockchain using the BUIDL ERC-20 token, which, per Etherscan, has one proprietor and a market capitalization of $0 on the chain. Additionally, the website stated that the fund received a $100 million transfer on March 4.
In January, BlackRock’s spot Bitcoin exchange-traded fund was among the initial offerings to obtain approval from the SEC. Just after the ETF approval, its CEO Larry Fink, who has been generally optimistic about Bitcoin with reservations, told Bloomberg:
We believe the next step going forward will be the tokenization of financial assets, and that means every stock, every bond […] will be on one general ledger.”
“Our identification numbers will be unique for each investor, including ourselves.” “With tokenization, we could eliminate all problems associated with illicit activities involving stocks, bonds, and digital assets,” Fink continued. Subsequently, he lauded customization strategies that utilized tokenization and immediate settlement.
The SEC has registered Securitize as an alternative trading system and stock transfer agent. In addition to tokenizing assets for Spanish real estate investment trust Mancipi and asset manager KKR, it acquired cryptocurrency fund manager Onramp Invest, which had assets under management exceeding $40 billion. It established a partnership with SBI Digital Markets in Singapore.
