BlackRock Introduces BUIDL Fund on UniswapX, Buys UNI

BlackRock Introduces BUIDL Fund on UniswapX, Buys UNI

Key Highlights

  • On February 11, BlackRock unveiled its plan to bring its tokenized BUIDL fund to the decentralized exchange, Uniswap, for institutional trading
  • However, only whitelisted and qualified investors will be able to trade this investment product
  • BlackRock will also acquire some UNI tokens

On February 11, the biggest asset management company, BlackRock, announced the integration of its tokenized Treasury fund with UniswapX. This announcement was confirmed by Uniswap Labs and Securitize, which makes this the first time a BlackRock product is tradable on a decentralized exchange.

How BlackRock’s Collaboration with UniswapX will Work 

The integration will allow qualified institutional investors to trade shares of the BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, through UniswapX technology. The access will not be open to the public, as only white-listed participants and qualified purchasers will be allowed to trade. 

BUIDL was launched in 2024 as a tokenized money market fund backed by U.S. Treasuries and cash. The fund currently holds approximately $1.8 billion in market value, and each token is priced at $1.0.

The trading works through UniswapX’s request-for-quote framework. After this, approved market makers compete to provide the best execution prices. Securitize, which tokenized the fund and handles compliance, has onboarded  Flowdesk, Tokka Labs, and Wintermute as market makers.

The settlement of this trade takes place through smart contracts, and investors keep self-custody of assets.

“Large asset managers want to walk before they run, and start with qualified purchasers. But the infrastructure we’re announcing will work equally with retail products,” said Securitize CEO Carlos Domingo, whose firm specializes in putting assets onto the blockchain.

BlackRock’s Global Head of Digital Assets, Robert Mitchnick, said, “This collaboration with Uniswap Labs alongside Securitize is a notable step in the convergence of tokenized assets with decentralized finance. The integration of BUIDL into UniswapX marks a major leap forward in the interoperability of tokenized USD yield funds with stablecoins.”

As a part of this partnership, BlackRock unveiled an investment in the Uniswap ecosystem. The firm will purchase an undisclosed amount of UNI, which is the platform’s governance token. 

This partnership comes after 18 months of talks between these two companies. 

Also Read: Tom Lee Says Crypto Rally Hinges on Bitcoin to Gold Reversal

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Rajpalsinh Parmar
Written by Rajpalsinh Parmar
Rajpalsinh is a crypto journalist with over three years of experience and is currently working with CryptoNewsZ. Throughout his journey, he has honed skills like content optimization and has developed expertise in blockchain platforms, crypto trading bots, and hackathon news and events. He has also written for TheCryptoTimes, where his ability to simplify complex crypto topics makes his articles accessible to a wide audience. Passionate about the ever-evolving crypto space, he stays updated on industry trends to provide well-researched insights. Outside of work, gaming serves as his stress buster, helping him stay focused and refreshed for his next big story. He is always eager to explore new blockchain innovations and their potential impact on the global financial ecosystem.