BlackRock, the largest asset manager globally, has officially filed Form D with the United States Securities and Exchange Commission (SEC) to launch the BlackRock USD Institutional Digital Liquidity Fund. This signifies the introduction of BlackRock’s inaugural tokenized asset fund.
The filing reveals that BlackRock established the fund in 2023 but is yet to launch it. Form D is utilized to secure various exemptions, and BlackRock is specifically seeking an exemption under Section 3(c) of the Investment Company Act to be exempt from certain SEC regulations. The fund was established within the jurisdiction of the British Virgin Islands.
Securitize, a US-based digital assets securities firm, will offer the fund with a minimum investment requirement of $100,000. Additionally, Securitize will manage the sale of the tokens. The form indicates that the fund has generated $525,000 in sales commissions and states the fund’s size as “indefinite.” The form was signed on March 14.
The fund will be tokenized on the Ethereum blockchain using an ERC-20 token called BUIDL. According to Etherscan, the token currently has one holder and a $0 on-chain market cap. On March 4, the fund received a transfer of $100 million.
BlackRock made headlines earlier this year when its spot Bitcoin (BTC) exchange-traded fund (ETF) became one of the first to receive SEC approval in January. BlackRock CEO Larry Fink, who generally expresses optimism towards BTC with some reservations, spoke to Bloomberg shortly after the ETF approval. Fink stated, “Every investor, you and I, will have our own number, our own identification. We could rid ourselves of all issues around illicit activities about bonds and stocks and digital by having a tokenization.” He further praised the customization strategies made possible through tokenization and the ability to achieve instantaneous settlement.
Securitize is registered as a stock transfer agent and alternative trading system with the SEC. The firm has previously tokenized assets for asset manager KKR and Spanish real estate investment trust Mancipi. Additionally, Securitize has partnered with SBI Digital Markets in Singapore and acquired cryptocurrency fund manager Onramp Invest, which manages over $40 billion in assets.