"BlackRock cannot sit still, it has an idea to dominate the digital world."
In a new move, documents filed with the Securities and Exchange Commission (SEC) show investment management giant BlackRock created a fund called BlackRock USD Institutional Digital Liquidity.
The fund, which is incorporated in the British Virgin Islands, will be launched in collaboration with an asset tokenization firm called Securitize.
Admittedly the filing does not reveal the assets held by the fund, but the presence of Securitize may have something to do with real-world assets (RWA) where it will represent the ownership of various assets through tokens on the blockchain.
After BlackRock's filing was released, the ONDO token founded by Ondo Finance running the RWA platform rallied 20% then 12% in the past 24 hours outperforming the broader crypto market.
Although it is still uncertain, blockchain data shows that $100 million from the stablecoin USD Coin (USDC) on the Ethereum (ETH) network has been transferred to an address related to the Securitize spreader that has the potential to be an initial investment into the fund.
The action was sparked after BlackRock joined the digital asset fund through a spot listing of Bitcoin (BTC) ETF in January 2024 then managed to collect more than $15 billion in assets under management and it should be known that the firm also filed a spot Ethereum (ETH) ETF last year.
According to BlackRock CEO Larry Fink in his interview with CNBC in January 2024, the BTC and ETH ETFs are just a push towards tokenization and he believes this new move is a significant trigger for RWA.
RWA is a growing sector in digital assets and traditional finance involves placing traditional assets on the blockchain to pursue faster solutions including increasing efficiency.
