BlackRock Selects Coinbase as Key Infrastructure Provider for BUIDL Fund

BlackRock Selects Coinbase as Key Infrastructure Provider for BUIDL Fund

BlackRock, a prominent asset management firm, has recently made headlines by selecting Coinbase as the key infrastructure provider for its tokenized investment fund, BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This fund aims to offer a stable value of $1 per token and pays daily accrued dividends directly to investors’ wallets as new tokens each month. By investing 100% of its total assets in cash, U.S. Treasury bills, and repurchase agreements, the fund allows investors to earn yield while holding the token on the blockchain.

Developed in partnership with tokenization company Securitize, the BUIDL fund marks a significant step forward for both BlackRock and Coinbase. In a statement on X (formerly Twitter), Coinbase announced its role as an infrastructure provider for the fund, showcasing its commitment to supporting traditional institutions entering the crypto industry. While specific details of Coinbase’s involvement were not disclosed, the partnership underscores the company’s dedication to providing the necessary technology and products for the growing tokenization sector.

It is worth noting that Coinbase already has a strong business relationship with BlackRock, serving as the custodian for the asset management firm’s flagship spot Bitcoin exchange-traded fund (ETF) product, IBIT. In addition to Coinbase, other institutions such as BNY Mellon, crypto infrastructure provider Fireblocks, Anchorage Digital Bank, and digital assets trust company BitGo are also participating in the fund. This collaborative effort signifies the increasing interest and involvement of traditional financial institutions in the crypto space.

Recent on-chain data reveals that an Ethereum wallet associated with BlackRock’s BUIDL fund has received significant donations from various members of the crypto community. According to blockchain intelligence platform Arkham Intelligence, the wallet has received over $50,000 worth of memecoins and non-fungible token donations, including well-known digital assets like PEPE, as well as lesser-known coins such as ROCK and GAINS. As of the latest update, the total value of assets in the wallet amounts to $100.05 million, indicating strong community support for the fund.

The partnership between BlackRock and Coinbase for the BUIDL fund represents a strategic collaboration between traditional finance and the emerging world of digital assets. By leveraging Coinbase’s infrastructure and expertise, BlackRock aims to offer innovative investment opportunities while paving the way for greater institutional participation in the crypto industry. As the ecosystem continues to evolve, partnerships like these are essential for bridging the gap between traditional finance and decentralized technologies.

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