BlackRock, the world’s largest asset manager, announced plans to launch a tokenized money market fund on the public Ethereum blockchain. Analysts at Bernstein laud this decision, emphasizing its potential to elevate Ethereum’s status among smart contract platforms. The move signifies a shift towards broader interoperability and programmability in crypto, as opposed to the previous perception of crypto as mere “retail casinos.”

BlackRock’s fund, named the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), will invest in U.S. Treasury bills, repurchase agreements, and cash, aiming for liquidity and stability. This initiative not only enhances crypto’s legitimacy but also paves the way for traditional institutional investors to explore on-chain funds, offering benefits like 24/7 settlement, transparency, and reduced operating costs. With partners like Securitize and traditional custodians like BNY Mellon onboard, this venture signals a significant step towards merging traditional finance with the burgeoning crypto space.