Stablecoin issuer Circle just rolled out a new smart contract functionality that enables holders of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) to convert their shares into USDC.
The BUIDL is asset management giant BlackRock’s first tokenized fund that invests in cash, U.S. Treasury bills and repurchase agreements.
Shares are represented by a blockchain-based token and dividends are directly sent to investors’ wallets as new tokens each month.
In a new statement, Circle says it now offers a near-instant and round-the-clock off-ramp service for BUIDL investors.
“Circle’s breakthrough smart contract functionality enables the frictionless transfer of BUIDL shares for USDC to Circle on the secondary market. USDC provides a trusted and transparent method for users looking to sell their BUIDL shares but remain holders of digital dollars.”
Circle CEO Jeremy Allaire says tokenization of real-world assets is a rapidly emerging product category.
“USDC enables investors to move out of tokenized assets at speed, lowering costs and removing friction. We’re thrilled to provide this functionality to BUIDL investors and deliver the core benefits of blockchain transactions via USDC availability to investors.”
BlackRock launched BUIDL last month. The fund manager says tokenization is a key focus of its digital asset strategy.
“Through the tokenization of the Fund, BUIDL will offer investors important benefits by enabling the issuance and trading of ownership on a blockchain, expanding investor access to on-chain offerings, providing instantaneous and transparent settlement, and allowing for transfers across platforms.”
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