Substantial Victory for Ethereum as BlackRock Transfers $150 Billion Treasury Fund into Digital Form
Ethereum scores a major victory, indeed! cried ex-Ethereum developer Eric Connor on the airwaves of X on April 30.
His comment came hot on the heels of a filing made with the US Securities and Exchange Commission on April 28 by none other than financial behemoth BlackRock. The firm intends to tokenize a staggering $150 billion from its Treasury Trust market fund using a new "DLT Shares" asset class.
That's a monster move! exclaimed Connor. According to him, it's the biggest real-world asset flow ever witnessed by Ethereum.
Ethereum: The Go-To for Real-World Asset Tokenization
BlackRock's Treasury Trust Fund is a money market fund that mainly invests in short-term US Treasury securities, providing stable income while preserving liquidity and the principal. The new tokenized version of these DLT shares will use blockchain technology, tracked by BNY Mellon, to record ownership.
The monolithic investment manager previously launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which allows qualified investors to earn yields through tokenized US Treasury securities right on Ethereum. In partnership with Securitize, this fund forms part of BlackRock's ongoing efforts to explore decentralized finance.
Researcher Leon Waidmann of Onchain Foundation reported that 93% of BUIDL's assets are currently stored on Ethereum, with its total assets under management on the platform amounting to $2.34 billion, as per rwa.xyz.
"Institutions flock to deep liquidity, credible neutrality, and battle-tested security," Waidmann noted before adding, "ETH is already their settlement layer." Another researcher, "CryptoGoos," echoed Waidmann's views, stating candidly that "Ethereum is extremely undervalued."
It seems that BlackRock is all in on tokenization, with CEO Larry Fink stating that tokenization will revolutionize investing, potentially accelerating mainstream adoption. He explained that markets wouldn't need to close, transactions that currently take days would clear in seconds, and billions of dollars currently immobilized by settlement delays could be reinvested immediately back into the economy, generating growth.
Fun fact: According to rwa.xyz, Ethereum currently dominates the real-world asset (RWA) tokenization market with a 56% market share and over $6.2 billion in tokenized funds on-chain, excluding stablecoins.
The Bear Market Blues
Despite all this positive news, ETH prices are still lingering at bear market lows. The asset has struggled to make a dent above $1,800 over the past week, and it's still wallowing in levels last seen in September 2023. With a 63% drop from its 2021 peak price and a 49% decline since the beginning of the year, it's no wonder analysts and advocates still think it will soon hit five figures.
Institutions, however, apparently aren't deterred by ETH's low price. Over the past four trading days, BlackRock's spot ETH ETF (ETHA) has amassed no less than $162 million worth of the asset.
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- BlackRock's intentions to tokenize $150 billion from its Treasury Trust market fund using a new DLT Shares asset class on Ethereum was hailed as a major victory by ex-Ethereum developer Eric Connor.
- The new tokenized version of these DLT shares will utilize blockchain technology and be tracked by BNY Mellon to record ownership.
- The monolithic investment manager previously launched the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which utilizes Ethereum for tokenizing US Treasury securities.
- Researcher Leon Waidmann of Onchain Foundation reported that 93% of BUIDL's assets are currently stored on Ethereum, with its total assets under management on the platform amounting to $2.34 billion.
- Institutions are flocking to Ethereum for its deep liquidity, credible neutrality, and battle-tested security, making it their settlement layer according to Waidmann.
- Despite low ETH prices, institutions such as BlackRock have been accumulating ETH, with BlackRock's spot ETH ETF (ETHA) amassing $162 million worth of ETH over the past four trading days.
