BlackRock has launched a new feature for its BlackRock USD Institutional Digital Liquidity Fund (BUIDL), enabling investors to convert fund shares into the USDC stablecoin.
Through Ethereum’s smart contract technology, this feature aims to streamline secondary market transactions.
The BUIDL fund, launched last month, allows investors to earn U.S. dollar yields by investing in secure assets like U.S. Treasury Bills, represented as ERC-20 tokens.
Circle’s USDC is the world’s second-largest stablecoin by market capitalization.
“Tokenization of real-world assets is a rapidly emerging product category,” said Jeremy Allaire, CEO of Circle, in a Thursday press release.
“Tokenizing assets is but one important dimension of solving investor pain points. USDC enables investors to move out of tokenized assets at speed, lowering costs and removing friction”
This development is part of BlackRock’s expanding digital assets strategy, following the successful launch of their iShares Bitcoin Trust.
