An important piece of news for the mass adoption of cryptocurrency for institutional investors...
- I have previously written about Blackrock Buidl tokens as a huge deal for cryptocurrency, as it represented a move by the biggest and perhaps most respected asset manager in the world into the world of cryptocurrency and permissionless public blockchains, in this case Ethereum.
- But Circle, the company which makes USDC stablecoins possible has made a move which completely breaks down the barrier between institutional investors and cryptocurrency investing in single tokens like Bitcoin, Ethereum and Hive. They're announced a redeemption function for Buidl tokens, allowing institutional investors who bought Buidl tokens the ability to redeem their tokens at dollar for USDC tokens, and this is HUGE!
- Why?? This gives the institutional investors USDC, the number two stablecoiin by market cap, which these instituitional investors can now use to buy Ether, since they are on the Ethereum blockchain, or they could go to the Thorchain blockchain and swap their USDC for Bitcoin on Thorswap, all from the security of their wallet.
- WOW!
- Actually Double Wow!
- I don't know if the average cryptoinvestors or non-cryptoinvestor realizes that for 10 years, all these institutional investors have been sitting on the sidelines watching crypto bros get rich and they didn't have a legally compliant way to get a share of these huge profits... until now.
These instituitonal investors are smart..
- ... and I am sure they think they are just as smart as the traders they have watched get rich in crypto...
- So I think they have a huge sense of FOMO watching from the sidelines for ten years...that's my take and I think this is a going to unleash some huge pent-up demand for assets in this asset class called cryptocurrency..
Meanwhile back on Inleo.io a dex called www.leodex.io
One day some of those people will want to invest in one of the hot niches of cryptocurrency called SOFI or social finance, where you can earn cryptocurrency on social media platforms, like... wait for it... Hive and Inleo
And one day SOON they could go to Maya blockchains DEX Cacaoswap, and swap USDC for Hive oe LEO.
Why is this a big deal??
Think of it like this: it's like having a bridge that connects three different islands.
- One island is the world of traditional finance looking for a legally compliant pathway into cryptocurrency.
- One bridge is the world of Blackrock Buidl tokens, which represents the legally compliant path into the world of cryptocurrency investing via a Treasury Bond Fund. So Buidl bridges Traditional FInance into Cryptocurrency, sort of, they are into a treasury bond fund, on a blcokchain, but they still can't access the greater cryptocurrency asset market.
- The second bridge is the USDC redemption process. It allows the funds they bridged onto Ethereum via Blackrocks Buidl Fund Bridge, now to Bridge into the general cryptocurrency market, where they have cash to shop around and buy almost anything they want. They will probably choose safe things like Bitcoin, which they know have the SEC stamp of approval.
So hopefully you see it now, Circle is providing the second bridge
- The Buidl Redemption process is a bridge to the broader cryptocurrency market. Without that bridge, it's hard for people and institutions to move between the two. But with the ability to redeem Blackrock Buidl tokens for USDC, it's like building that bridge – it makes it way easier for everyone to get where they want to go.
- So, being able to redeem Blackrock Buidl tokens for USDC is a pretty big deal. It's all about making things easier, more secure, and opening up new opportunities in the exciting world of cryptocurrency.
- This is a good reason to be excited about the future, it looks very bright.
Fun Fact about the name Buidl Fund
- Fun Fact: It has been reported that Larry Fink, the CEO of Blackrock, purposely named his 100 Million Dollar plus fund Buidl, BUIDL is a purposeful mis-spelling of the work BUILD, as a tribute to the term HODL, a purposeful mis-spelling of the word HOLD.
- It's reported that Larry Fink is telling crypto people : I have studied your ecosystem, and I speak your language, even your memes..
- I think that's fun and cool.
@shortsegments
Posted Using InLeo Alpha
This post has been manually curated by @alokkumar121 from Indiaunited community. Join us on our Discord Server.
Do you know that you can earn a passive income by delegating your Leo power to @india-leo account? We share 100 % of the curation rewards with the delegators.
100% of the rewards from this comment goes to the curator for their manual curation efforts. Please encourage the curator @alokkumar121 by upvoting this comment and support the community by voting the posts made by @indiaunited.
Thank you
Qoto Mastodon
https://qoto.org/web/statuses/112303081760770590
Hello
This is a very important bit of news, but I wonder what token these institutions will buy. The crypto world is still mainly off limits due to the lack of clarity as to what tokens are securitites and which ones are commodities. So I worry they will still wait on the sidelines for the SEC or U.S. Congress to act.
Thank you
So this mean that the Buidl Fund is like a gateway to the rest of the crypto market for the institutions.
I think this is good news, as those people will now seek out other investments perhaps.
Exactly.