BlackRock, the world's largest asset manager, shows interest in cryptocurrencies and blockchain technology, advancing in tokenized bonds.

Ethena Chooses BlackRock

The DeFi platform Ethena recently announced its decision regarding a $46 million reserve fund. This fund will be converted into BlackRock and Securitize’s tokenized fund BUIDL, along with tokens USDM, USTB, and USDS. BUIDL will receive the largest share of $18 million, while the distribution for other tokens is as follows: USDS: $13 million, USDM: $8 million, USTB: $7 million.

Tokenized Bonds

A key lesson from Tether is the importance of backing reserves with highly liquid assets. Investments in stocks could lead to loss of value for stablecoins amidst market fluctuations. In response to criticism, Tether has transitioned to using bonds. The demand for tokenized U.S. bonds from giants like BlackRock is driven largely by stablecoin yields. Consequently, the tokenized Treasury market has tripled over the past year, reaching $2.2 billion.

Market Outlook

Ethena received applications from 25 different issuers to meet its fund needs, selecting BlackRock among others. BUILD and many other RWA tokens have been issued on the Ethereum network, with various tokenized assets expanding to networks such as Solana and Avalanche. In the long term, demand and activity in this space are expected to offer substantial returns and support for reliable smart contract platforms. Meanwhile, Bitcoin continues to hover around $60,500, seemingly unaffected by all positive news.

BlackRock continues to pursue significant initiatives in tokenized assets, suggesting promising prospects for the future of blockchain-based finance.