Circle, one of the biggest companies working with digital currencies, has added a new tool that lets you instantly convert shares from BlackRock’s tokenized fund into its USDC stablecoin.
Circle announced a new smart contract technology that will make it easy for BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) owners to exchange their shares for Circle’s USDC stablecoin. This smart contract function is meant to give investors a “near-instant” way to get out of BUIDL so they can access the fund anytime.
USDC-backed BUIDL Fund: BlackRock’s Tokenized Investment Vehicle
The BlackRock Digital Liquidity Fund (BUIDL), managed by BlackRock, one of the biggest investment firms in the world, became the first tokenized financial vehicle in March. This project issues shares as tokens on the Ethereum blockchain using the ERC-20 token standard, and investors can receive returns in US dollars.
Participants can invest in the fund, which mainly deals with short-term financial instruments like U.S. Treasury bills, using the BUIDL coin, a big step toward digitizing traditional financial assets.
BlackRock’s iShares Bitcoin Trust is one of the biggest spot Bitcoin ETFs, with assets worth over $18.5 billion and the biggest net intake, with $14.95 billion. Working with Circle is believed to make BUIDL more useful and appealing to investors.
Circle has started many strategic projects in the last few weeks to increase its impact in the blockchain industry. The company directly added its USDC stablecoin to the zkSync environment, which made transactions faster and easier to scale. Circle has also teamed up with Solana to add its cross-chain transfer protocol to the Solana blockchain environment.
The partnership between Circle and BlackRock is a significant move forward in the area where traditional finance and digital assets meet. This could lead to even more innovation and widespread use in the financial world.
