BlackRock enters DeFi trading with Uniswap token purchase

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In a clear signal of the accelerating merger between Wall Street and cryptocurrency, the world’s largest asset manager is entering the decentralized finance (DeFi) space. BlackRock announced on Wednesday that it will list its Treasury-backed digital token, BUIDL, on the leading DeFi platform Uniswap, where institutional traders will be able to buy and sell it. As a component of this partnership, BlackRock is also acquiring an unspecified quantity of Uniswap’s native UNI token.

This new initiative, executed in collaboration with the firm Securitize, represents a major landmark for the DeFi sector, widely considered one of crypto’s most practical use cases. In contrast to conventional trading that depends on centralized intermediaries for trade recording and settlement, platforms such as Uniswap use smart contracts to connect buyers and sellers through liquidity pools and automated market makers. Presently, DeFi platforms hold approximately $100 billion in capital.

BlackRock’s choice to list its BUIDL fund, which launched in 2024 and has a total market value nearing $180 billion, signifies a powerful endorsement of DeFi from one of the finance industry’s most prominent players.

The immediate practical effect of BUIDL’s addition to Uniswap is expected to be limited, however, as the setup requires Securitize to establish a whitelist of approved institutions permitted to engage in the DeFi trading. The firm is also approving a select group of market makers, such as established crypto liquidity provider Wintermute, to support trading activity. Furthermore, access to BUIDL is confined to qualified purchasers, a legal classification for individuals or entities holding at least $5 million in assets.

These limitations will result in a relatively small number of traders exchanging BUIDL on Uniswap’s decentralized platform, which imposes a 0.3% fee on trades. Nevertheless, the new arrangement is also functioning as a crucial pilot project and is anticipated to pave the way for an expanding group of traders utilizing DeFi to exchange stocks and an increasing array of other traditional assets.

“Large asset managers prefer to walk before they run, beginning with qualified purchasers. However, the infrastructure we are unveiling will be just as effective for retail products,” stated Securitize CEO Carlos Domingo, whose company focuses on digitizing assets on the blockchain.

Worlds colliding

The partnership between BlackRock and Uniswap is notable because the two companies represent vastly different ends of the financial services industry. BlackRock is a classic Wall Street institution, whereas Uniswap is recognized as one of crypto’s most advanced hubs, where pseudonymous “degens”—industry slang for high-risk traders—trade obscure digital tokens.

Uniswap founder and CEO Hayden Adams told media that the collaboration developed over a year and a half of meetings held at BlackRock’s luxurious office in Manhattan’s Hudson Yards and at the startup’s “very pink” headquarters in SoHo.

Adams did not disclose the size of BlackRock’s UNI token acquisition. The token, which acts as a measure of Uniswap’s value, is currently priced around $3.30 and has a total market capitalization exceeding $2 billion.

For Adams, the move by a major institution like BlackRock to adopt Uniswap’s technology confirms his conviction that all types of asset trading will transition to blockchain-based platforms. He noted that this tokenization process, praised for benefits like instant settlement, will generate efficiencies and advantages for the wider investment community.

In a statement, BlackRock’s Global Head of Digital Assets, Robert Mitchnick, said the arrangement with Uniswap will also be advantageous for stablecoins, which are quickly integrating into the broader financial ecosystem.

“This collaboration with Uniswap Labs alongside Securitize is a significant advancement in merging tokenized assets with decentralized finance. The integration of BUIDL into UniswapX represents a major step forward in achieving interoperability between tokenized USD yield funds and stablecoins,” Mitchnick said.