With the new smart contract, holders of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) can now transfer their shares to Circle for USDC.
USDC stablecoin issuer Circle has announced that its new smart contract functionality enables holders of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which offers U.S. dollar yields through tokenization, to transfer their shares to Circle for USDC.
BUIDL is a tokenized fund launched by BlackRock in March 2024. This blockchain-based investment fund leverages the Ethereum network to achieve U.S. dollar yields. Such an innovative investment method combines the reliability of traditional financial mechanisms with the efficiency of blockchain technology.
With the new functionality, investors can not only earn USD yields but also transfer their shares to Circle for USDC. The USDC stablecoin has the second largest stablecoin ecosystem, behind only USD Tether (USDT). It also boasts the fifth-largest market capitalization in the cryptocurrency market.
“Tokenization of real-world assets is a rapidly emerging product category. Tokenizing assets is but one important dimension of solving investor pain points. USDC enables investors to move out of tokenized assets at speed, lowering costs and removing friction. We’re thrilled to provide this functionality to BUIDL investors and deliver the core benefits of blockchain transactions via USDC availability to investors.”
Jeremy Allaire, Co-founder and CEO of Circle
USDC transfers will be near-instant and available 24/7. These operations offer standard benefits of tokenized asset transactions: speed, transparency and efficiency.
Pursuing the wider pool of blockchain and crypto investment products BlackRock is also still awaiting the SEC’s decision on its Ethereum ETF application. BlackRock CEO Larry Fink believes an ether ETF would still be possible even if the U.S. Securities and Exchange Commission designates the ETH cryptocurrency as a security.
