BlackRock’s Tokenized Fund Set To Bring Legitimacy To Ethereum And Other Blockchains Seen As ”Retail Casinos,” Bernstein Says

BlackRock’s
plan
for
its
first
tokenized
fund
will
help
to
bring
“legitimacy”
to
Ethereum
and
other
public
smart
chains
that
so
far
have
been
seen
”as
retail
casinos,”
says

brokerage
firm
Bernstein.

Analysts
Gautam
Chhugani
and
Mahika
Sapra
said
in
a
Mar.
26
note
that
the
fund
management
titan’s
planned
USD
Institutional
Digital
Liquidity
Fund
will
encourage
”more
traditional
institutional
customers
to
adopt
on-chain
funds,”
and
thus
drive
institutional
utility
for
Ethereum
and
other
public
blockchains.

BlackRock’s

tokenized
fund
marks
an
effort
to
venture
deeper
into
the
cryptocurrency
industry
after
the
fund
manager
launched
a
spot
Bitcoin
ETF
(exchange-traded
fund
(ETF)
in
January.

????

#Bernstein:

@BlackRock‘s
tokenized
fund
brings
legitimacy
to
public
blockchains.

✅
The
analysts
said
that
tokenized
funds
could
also
become
a
new
growth
category
for
asset
managers,
evolving
from
simple
ETF
investing
to
creating “on-chain”
products.

#BlackRock

#Securitize

pic.twitter.com/IlrhZbeK4V

—
Dvizh
????????
(@dvizh_com)

March
27,
2024

BlackRock
Bringing
Crypto
And
TradFi
Together

The
analysts
said
that
while
tokenized
funds
are
not
new,
BlackRock’s
offering
is
unique
as
it
brings
together
players
from
both
the
traditional
financial
industry
and
the
crypto
sector.

BlackRock
is
using
Securitize
as
the
tokenization
platform
for
the
fund.
Other
crypto
players
like
Coinbase,
BitGo,
and
Fireblocks
were
named
as
custodians,
and
settlement
partners
for
the
fund’s
digital
assets.

BNY
Mellon
will
promote
the
interoperability
of
the
fund
with
traditional
markets
as
a
custodian
for
the
fund’s
assets.

This
model
will
“facilitate
interoperability
between
both
sides
and
would
comfort
more
traditional
customers
to
adopt
on-chain
funds,
without
major
friction
points,”
the
Bernstein
analysts
said.

BlackRock’s
fund
also
acts
as
a
major
test
case
for
institutions
to
leverage
instant,
transparent
and
efficient
blockchain
settlements
at
reduced
costs,
it
added.

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