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BlackRock Inc. announced its intentions to launch a tokenization fund valued at $10 trillion, making it the largest endeavor of its kind in the world. The firm, which manages assets with a total value of $10 trillion, plans to invest $100 million in Ethereum’s USDC network.

It’s noteworthy that this information was presented for the first time on March 19 in a filing to the U.S. Securities and Exchange Commission (SEC) by the BlackRock USD Institutional Digital Liquidity Fund. The document identifies Securitize as the beneficiary of the sales commission, which is a significant aspect, considering its position as a leading entity in the field of real-world asset (RWA) tokenization.

The massive BlackRock fund The BlackRock fund is expected to introduce a minimum investment amount of $100,000, and the sales commissions were estimated at $525,000, according to the filing.

Information on the minimum investment amount / Source: On-chain analysis revealed that the BlackRock tokenization fund has already received an initial investment of $100 million in USDC. It’s also significant that the company likely stores this amount on the Ethereum blockchain, using the Circle USD stablecoin.

Sponsored The prior engagement of Larry Fink, CEO of BlackRock, in issues related to asset tokenization is also interesting. Fink expressed interest in this issue as early as 2023, highlighting the dynamic changes occurring in the digital asset arena. Was the fund representative aware of the potential of digital assets at that time?

The fund’s vision on tokenization Larry Fink had previously signaled interest in asset tokenization. In his annual letter to investors in 2023, the CEO of BlackRock mentioned “tokenization of shares”. Later, in an interview with Bloomberg Television in January 2024, Fink discussed a “change in architecture” for BlackRock. He referred to plans for the next step – the tokenization of financial assets.

Larry Fink indicated in the interview as follows:

“And that means every share and every bond would have its own return. They would be in one ledger. (…) But most importantly, we could tailor strategies through tokenization. (…) We would have an instant solution. Think about all the costs of settling bonds and shares, but if you had tokenization, everything would be instant. (…) We believe, therefore, that this is a technological transformation of financial assets.”

This vision met with interest from Securitize, which reportedly invested $400 million in RWAs through more than 500,000 investors.

The conclusion from the above is that the gigantic asset manager is now ready to officially introduce its tokenization fund. Thus, it can immerse itself in the technological revolution represented by decentralized finance (DeFi) and Web3. However, crypto investors question whether BlackRock will truly embrace the aspect of decentralization or try to change it.

Speculation is currently rife in the cryptocurrency market about which infrastructural cryptocurrencies will benefit from the expected surge in mass adoption.

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