The growing presence of Wall Street companies in the world of stablecoins might lead to swifter regulation in the US, offering a non-governmental option comparable to a Central Bank Digital Currency (CBDC).
Based on the assessment of cryptocurrency investor Ryan Sean Adams, the recent introduction of US Dollar Coin (USDC) off-ramps for BlackRock’s tokenized fund marks a continuation of the process merging conventional finance with stablecoin platforms.
“Adams expressed on X (previously Twitter) that stablecoins are inevitable in the US due to the strong support from institutions like BlackRock and the banks.”
Circle, the company behind USDC stablecoin, announced on April 11 that it has introduced a new feature enabling investors in BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) to swap their fund shares for USDC stablecoins directly with Circle. Essentially, this function enables BUIDL shareholders to convert their holdings into stablecoins at any time, thereby improving the liquidity of their investments.
In April 2022, Circle and BlackRock revealed a strategic collaboration. During this arrangement, BlackRock participated in Circle’s $400 million investment round as a significant investor. Additionally, BlackRock is responsible for managing the Circle Reserve Fund, a government money market fund where Circle holds exclusive investing privileges.
“Adams pointed out that the new BlackRock fund on Ethereum, called BUIDL, acts as a fast connection between U.S. Treasuries and USDC in the cryptocurrency world. He further mentioned that Circle’s upcoming IPO would facilitate the incorporation of stablecoins into traditional financial markets.”
“The banks will backdoor themselves into stablecoins – by acquiring/partnering/controlling crypto native companies – and they’ll lobby for stablecoin legislation and make it happen along the way. The US does not have the political will to build a central bank digital currency. They’re create one defacto through private bank issued stablecoins on public crypto networks like Ethereum.”
BlackRock is currently a major figure in the cryptocurrency sector. They manage the iShares Bitcoin Trust (IBIT), which has a value of $18.5 billion as of April 10 and tracks the price of Bitcoin. More recently, they introduced their tokenized fund, BUIDL, allowing investors to purchase tokens representing shares in a fund investing in assets such as U.S. Treasury bills.
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2024-04-11 21:35