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Bernstein notes that while tokenized money market funds are not new, the launch of the BlackRock USD Institutional Liquidity Fund (BUIDL) is significant in the way the investment manager has “brought in key ecosystem partners from both the traditional world and the crypto world.”
“This would facilitate interoperability between both sides and would comfort more traditional customers to adopt on-chain funds, without major friction points,” analysts Gautam Chhugani and Mahika Sapra wrote.
The fund is represented by the blockchain-based BUIDL token, and is fully backed by cash, U.S. Treasury bills, and repurchase agreements, BlackRock said.