BlackRock, the leading asset manager globally, has submitted a Form D to the U.S. Securities and Exchange Commission for its new BlackRock USD Institutional Digital Liquidity Fund, introducing its inaugural tokenized asset fund.

The document reveals that the fund, established in 2023, is pending launch. Form D facilitates certain exemptions, with BlackRock aiming for an exemption under Section 3(c) of the Investment Company Act to sidestep specific SEC rules.

The British Virgin Islands serves as the legal domicile for the fund.

With a minimum investment threshold set at $100,000, the fund's token sales will be handled by Securitize, a digital assets securities company based in the U.S.

The form, dated March 14, lists $525,000 in sales commissions and describes the fund's size as "indefinite."

This fund will be represented on the Ethereum blockchain by an ERC-20 token named BUIDL, which, as per Etherscan, currently has a single owner and no market capitalization on-chain. Etherscan data also shows a $100 million transfer to the fund on March 4.

Following the SEC's approval of BlackRock's spot Bitcoin ETF in January, CEO Larry Fink, who is optimistic about BTC albeit with some caution, shared with Bloomberg:

“We believe the next step going forward will be the tokenization of financial assets, and that means every stock, every bond […] will be on one general ledger.”

Fink further discussed the potential for tokenization to eradicate financial crimes and streamline the transaction process for stocks and bonds, offering each investor a unique identifier.

He highlighted the benefits of tokenization for custom investment strategies and the possibility of instant settlements.

Securitize holds registrations as a stock transfer agent and an alternative trading system with the SEC.

It has facilitated tokenization for entities such as asset management firm KKR, Spanish real estate investment trust Mancipi, and has engaged in partnerships with SBI Digital Markets in Singapore.

Additionally, it acquired Onramp Invest, a cryptocurrency fund manager overseeing more than $40 billion in assets under management.

Sources:

https://cointelegraph.com/news/blackrock-begins-asset-tokenization-launch-digital-liquidity-fund

https://etherscan.io/token/0x84e3719c49b0eb66b409bb9b9658d6bdf4372b63#code

https://twitter.com/rleshner/status/1770151746129563777