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  • BlackRock’s Tokenised Fund On ERC🪨 - Issue #133

BlackRock’s Tokenised Fund On ERC🪨 - Issue #133

Issue #133 : Web 3 News Headlines Of The Week📆

BlackRock has unveiled its inaugural tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), marking a significant milestone in its digital assets strategy.

Through this fund, qualified investors can access U.S. dollar yields by subscribing through Securitize Markets, LLC. Robert Mitchnick, Head of Digital Assets at BlackRock, sees this launch as a crucial step forward in addressing real client needs in the digital assets space.

Tokenization lies at the heart of BlackRock's strategy, aiming to provide investors with benefits such as enhanced access, transparent settlement, and interoperability across digital and traditional markets. Collaborating with Securitize, BlackRock seeks to leverage blockchain technology to revolutionize capital markets.

BUIDL maintains a stable value of $1 per token and distributes daily accrued dividends directly to investors' wallets. The fund invests in cash, U.S. Treasury bills, and repurchase agreements, allowing investors to earn yield while holding tokens on the blockchain.

Key ecosystem participants include Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks, alongside other industry players. BlackRock Financial Management, Inc., and Bank of New York Mellon will serve as the investment manager and custodian, respectively, ensuring robust governance and security.

This initiative underscores BlackRock's commitment to innovation and its recognition of the transformative potential of blockchain technology in finance. With strategic investments in Securitize, BlackRock aims to further strengthen its position in the digital assets ecosystem, paving the way for broader adoption and accessibility.

Ethereum Joins The Security Hitlist🇺🇸

The Securities and Exchange Commission (SEC) is reportedly intensifying its efforts to classify Ethereum as a security, as revealed by U.S. companies that have received subpoenas related to an investigation.

This development deals a significant blow to the cryptocurrency industry's hopes for the approval of Ethereum exchange-traded funds (ETFs), following the SEC's prior approval of Bitcoin ETFs in January. The subpoenas coincide with the SEC's broader campaign, under the Biden administration, to crack down on what they perceive as the lawlessness within the crypto industry. However, the legal status of cryptocurrencies remains ambiguous, leading to ongoing court battles over the SEC's jurisdiction over the industry.

While Bitcoin is generally regarded as a commodity overseen by the Commodities and Futures Trading Commission (CFTC), SEC Chair Gary Gensler has signaled that most other cryptocurrencies, including Ethereum, are considered securities that require SEC registration. This stance contrasts with past assertions that Ethereum did not resemble a security, as stated by former SEC Director of Corporation Finance William Hinman in 2018.

However, Gensler's view shifted after Ethereum's transition to a proof-of-stake model, suggesting that crypto assets produced by such blockchains could be classified as securities. The recent approval of ETFs tracking Ether futures by the SEC, overseen by the CFTC, further complicates the regulatory status of Ethereum.

The SEC's investigation into Ethereum involves demanding companies to provide documents and financial records related to their interactions with the Ethereum Foundation, particularly after the blockchain's shift to proof-of-stake in September 2022. The move away from the energy-intensive model of Bitcoin to proof-of-stake has provided the SEC with a pretext to potentially classify Ethereum as a security.

Despite the SEC's actions, its Ethereum investigation has drawn criticism and speculation, with concerns raised about the implications for the broader crypto market and the oversight of Ether futures markets by the CFTC. The SEC has declined to comment on the existence of the investigation.

Google Your Favourite LARPs ENS Domain 🔍

Google has expanded its support for Ethereum Name Service (ENS) domains by now displaying wallet balances associated with these domains in search results.

The Ethereum Name Service provides human-readable domains linked to Ethereum wallets, making it easier for crypto users to transact.

Initially introduced in May 2023, Google's native support for Ethereum wallet balances allowed users to search for specific public addresses and view their balances directly in search results. This functionality has now been extended to include ENS domains. When users search for an ENS domain, Google displays the wallet balance of the blockchain address associated with the domain, along with the address itself. The balance is sourced from Etherscan and reflects the latest external transaction.

However, it appears that this feature may not be universally available to all users. Some users have reported that the wallet balance feature does not consistently appear in search results. According to former ENS core team member Brantly Millegan, the feature tends to work more reliably when using private browsing mode or when logged out of Google services. Despite these limitations, the inclusion of wallet balances in search results represents a significant step in providing greater transparency and accessibility to cryptocurrency users.

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Base Picks Up Degen Traction🔵

The daily trading volume on the Ethereum Layer 2 network, Base, experienced a remarkable surge, reaching a new high of $356 million on Tuesday, marking a significant 51% increase from the previous day's volume, as reported by DefiLlama data.

Accompanying this surge in trading volume, Base's total value locked (TVL) also reached a new all-time high, reaching a total of $745.3 million, according to available data. Additionally, the network witnessed a substantial increase in daily transactions, totaling 1.65 million, and welcomed nearly 130,000 new users on Wednesday, according to analytics platform Dune.

The surge in activity on the Base network can be largely attributed to Ethereum's recent Dencun upgrade, which significantly reduced transaction fees on Layer 2 networks. This development positioned Base as one of the most cost-effective options in the market for utilizing Ethereum, explained Joe Caselin, head of institutional marketing at BIT.

Despite this notable growth facilitated by the Dencun upgrade, data indicates that most of the activity occurred amid a brief spike in average transaction fees to over $1. However, analysts remain optimistic about Base's future growth trajectory, particularly as Coinbase aims to further integrate its users into the on-chain economy. Coinbase's recent unveiling of its smart wallet is expected to enable traders to utilize their balances on the crypto exchange directly on-chain, indicating a promising outlook for continued expansion and adoption of the Base network.

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