BlackRock’s Tokenized Fund Sees $18.68M in USDC Conversions via Zero Hash Partnership

TLDR:

• Zero Hash processed $18.68 million in USDC to USD conversions for BlackRock’s $500M tokenized fund (BUIDL) in 24 hours
• Securitize integrated with Zero Hash to enable USDC to USD conversion for BUIDL investments
• BUIDL is the world’s largest tokenized fund with over $500M in AUM
• Zero Hash now provides payment rails for 70% of the total tokenized money market fund market
• The integration aims to enhance on-chain investor experience and expand access to stable investments

BlackRock’s tokenized money market fund, BUIDL, has seen significant activity following a new partnership between Securitize and Zero Hash. In the first 24 hours after launching USDC to USD conversions, Zero Hash processed $18.68 million for the $500 million fund.

Securitize, a platform specializing in tokenizing real-world assets, announced its integration with Zero Hash on October 15, 2024. This collaboration allows qualified institutions to convert their USDC (a popular stablecoin) to USD for investing in BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL.

BUIDL, launched in March 2024, is currently the world’s largest tokenized fund with over $500 million in assets under management (AUM). The fund aims to offer investors a stable value of $1 per token and pays daily accrued dividends as new tokens each month. BUIDL invests all of its assets in cash, U.S. Treasury bills, and repurchase agreements, providing investors an opportunity to earn U.S. dollar yield while holding tokens on-chain.

Carlos Domingo, Co-founder and CEO of Securitize, stated that the integration feature has been in high demand since BUIDL’s launch. He expects this development to accelerate the fund’s adoption further. Domingo emphasized that this move is part of Securitize’s broader goal to digitize capital markets through tokenization.

The partnership addresses a significant challenge for Web3 native firms, which have traditionally struggled to access high-quality stable investments typically offered through traditional finance channels.

By enabling USDC to USD conversions, the integration allows digital asset companies to remain on-chain throughout the entire investment process.

Zero Hash, a crypto and stablecoin infrastructure provider, now supports payment rails for approximately 70% of the total tokenized money market fund market. This includes not only BlackRock’s BUIDL but also Franklin Templeton’s fund.

The BUIDL fund offers several advantages to investors. It enables the issuance and trading of ownership on a blockchain, expanding investor access to on-chain offerings. The fund also provides near-instantaneous and transparent settlement, allowing for transfers across platforms.

Qualified institutions interested in purchasing BlackRock’s BUIDL can find more information and start the investment process through Securitize’s website. The integration is expected to streamline the investment process for those holding USDC, potentially attracting more investors to the tokenized fund market.