Circle enables USDC transfers for BlackRock’s first tokenized fund

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USDC’s publisher, Circle, now allows transferring shares of BlackRock’s institutional digital cash fund, BUIDL, directly to its stablecoin.

On April 11, Circle formally unveiled a fresh smart contract feature enabling BUIDL token owners to exchange their shares with Circle in return for USDC.

With Circle’s smart contracts, you can easily swap BUIDL tokens for USDC on the secondary market in a seamless transaction. Announced recently, this functionality provides an instant “off-ramp” for BUIDL investors, allowing them to make transactions at any time.

In March 2024, BlackRock introduced BUIDL, a fund operated on the Ethereum blockchain and issued as a token. This innovative financial instrument enables investors to earn US dollar returns through the process of tokenization.

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With BUIDL, investors can buy tokens that signify ownership in a digital fund. This fund puts resources into assets such as U.S. Treasury bills. Since it’s a digitized investment vehicle, existing on the Ethereum blockchain as an ERC-20 token named BUIDL, it is often referred to as the “digital liquidity fund.”

BlackRock, the fastest-growing operator of a Bitcoin (BTC) ETF in the US, has launched the first tokenized fund using this new investment instrument.

Jeremie Allaire, co-founder and CEO of Circle, shares that the process of converting real-life assets into digital tokens is gaining popularity at an impressive rate.

“Allaire pointed out that breaking down assets into tokens is just one aspect of addressing investor concerns. With USDC, investors can quickly transfer their tokens back into traditional currency, reducing costs and eliminating hassles.”

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This is a developing story, and further information will be added as it becomes available.

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2024-04-11 16:51