HomeNewsCircle & BlackRock Partnership: USDC Swap for Tokenized Fund Shares

Circle & BlackRock Partnership: USDC Swap for Tokenized Fund Shares

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  • By providing ongoing access and liquidity, Circle’s new smart contract feature allows for the rapid conversion of BUIDL shares to USDC.
  • A clear indication of the market’s confidence and interest in tokenized funds is BUIDL’s quick $245 million acquisition from seven investors.

The world’s largest asset manager, BlackRock, has formed a partnership with fintech company Circle.

In order to improve the operation of Black Rock’s USD Institutional Digital Liquidity (BUIDL) fund through smart contract technology, this is a merger between traditional finance and block-chain technology that will help secure efficient, cost-effective global transactions and digital assets that integrate more easily into one’s wallet.

Improvements to Smart Contract Technology

Circle announced the incorporation of a new smart contract functionality created especially for BUIDL investors as part of the strategic partnership. BUIDL shares can be converted almost instantly into Circle’s USDC stablecoin thanks to this smart contract.

With the addition of this function, investors will have a “near-instant” off-ramping option that runs continuously, enabling them to manage their assets swiftly and effectively in reaction to market conditions.

As previously reported by ETHNews, BUIDL has garnered significant interest since its launch in March, amassing assets valued at $245 million from a mere seven investors. Notably, BUIDL has received $95 million from Ondo Finance, which is well-known for its proficiency in tokenizing BlackRock’s ETFs.

This amount represents 38% of the fund’s total value. Two investors who have each donated $50 million, one who has provided $35 million, and four more who have each contributed $5 million are among the other significant contributors.

This wide range of investors highlights the potential and widespread appeal of tokenized financial assets.

Mutual Fund for Digital Assets and Tokenization

BlackRock’s entry into tokenized investment vehicles is represented by the BlackRock Digital Liquidity Fund (BUIDL), which was launched in March and gives investors access to yields denominated in USD through shares that are tokenized on the Ethereum blockchain.

BlackRock uses the ERC-20 token standard to simplify investment procedures for conventional financial products like US Treasury notes and to enable digital transactions.

Circle has been aggressively growing its blockchain footprint in the last several weeks. In order to improve transactional efficiency and scalability, this involves the native integration of its USDC stablecoin into the zkSync ecosystem.

The collaboration between Circle and Solana also introduces a new cross-chain transfer protocol, enhancing the blockchain ecosystem with more dependable and adaptable financial tools. The video below goes deeper into this development and provides additional insight.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628