In its latest foray into crypto, financial giant BlackRock has launched its first tokenized fund on the Ethereum blockchain. The BlackRock USD Institutional Digital Liquidity Fund, also known as BUIDL, is fully collateralized by cash, U.S. Treasury bills, and repurchase agreements. It provides qualified investors with an opportunity to earn U.S. dollar yields.
For BUIDL, qualified investors who have at least $25 million in investable assets will create a digital wallet and sign up with Securitize to be able to invest in the fund. The fund’s initial investment minimum is $5 million. Investors can purchase a token at a stable price of $1 and earn interest in the form of the token.