BlackRock’s $2.1 Billion Tokenized Treasury Fund Now Available on Uniswap

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TLDR

  • BlackRock is listing its $2.1 billion BUIDL tokenized Treasury fund on the Uniswap decentralized exchange.
  • As part of the agreement, the asset manager acquired an unspecified quantity of Uniswap’s UNI governance token.
  • Initially, trading will be restricted to authorized institutional investors and market makers, with plans for broader availability later.
  • BUIDL is recognized as the largest tokenized money market fund and operates across Ethereum, Solana, BNB Chain, Aptos, and Avalanche.
  • This development signifies BlackRock’s official entry into decentralized finance trading infrastructure.

BlackRock is introducing its tokenized US Treasury fund to the Uniswap decentralized exchange. This move marks the first instance of a major asset manager integrating a tokenized money market fund with DeFi trading infrastructure.

The USD Institutional Digital Liquidity Fund, referred to as BUIDL, currently manages $2.18 billion in total assets, making it the largest tokenized money market fund based on data from RWA.xyz.

In connection with this arrangement, BlackRock purchased an undisclosed amount of Uniswap’s governance token, UNI. The company did not disclose the investment’s value in its announcement on Wednesday.

Trading of BUIDL on Uniswap will commence with a select group of participants, initially accessible only to eligible institutional investors and market makers.

Securitize, the tokenization firm that collaborated with to launch BUIDL, is facilitating this partnership. CEO Carlos Domingo stated that institutions can now engage in self-custodial trading of tokenized real-world assets on a major DeFi platform for the first time.

Traditional Finance Meets Blockchain Technology

BUIDL is operational across several blockchain networks, including Solana, BNB Chain, Aptos, and Avalanche. The fund offers exposure to US Treasury securities via blockchain-based tokens.

By December 2024, BUIDL had surpassed $100 million in cumulative distributions from its Treasury holdings, demonstrating consistent growth since its inception.

BlackRock’s shares are currently trading at $1,082.88, with a 13.5% return over the past year and a 60.7% return over three years.

Money Market Funds Eye Blockchain Growth

Several prominent financial institutions have entered the tokenized money market product space. Goldman Sachs and BNY have collaborated to enhance institutional access to similar offerings.

strategists have identified tokenized money market funds as a potential response to the growth of stablecoins. While both asset types utilize blockchain infrastructure, they serve distinct market functions.

The GENIUS Act, which addresses stablecoin regulation, could potentially accelerate the adoption of both stablecoins and tokenized assets. Solomon Tesfaye, chief business officer at Aptos Labs, suggested that clearer stablecoin regulations might foster broader blockchain adoption.

JPMorgan strategist Teresa Ho observed that tokenization allows investors to utilize money market fund shares as collateral without sacrificing yield. This capability could empower traditional funds to remain competitive as stablecoins gain market share.

BlackRock’s stock is trading approximately 18% below the consensus analyst target price of $1,328.44. Recent data indicates a decline of roughly 0.6% in the stock over the past 30 days.