BlackRock Launches First Tokenized Fund on Ethereum, Signaling Institutional Adoption

The world's largest asset manager, BlackRock, has introduced its first tokenized fund on the Ethereum blockchain, marking a significant step towards bridging traditional finance and the cryptocurrency sector.

• BlackRock's USD Institutional Digital Liquidity Fund, the first of its kind, runs on Ethereum and aims to offer tokenized assets to its clients.
• The move is seen as bringing legitimacy to Ethereum and public blockchains, previously perceived mainly as platforms for retail speculation.
• Analysts from Bernstein highlight the fund's potential to encourage more traditional institutional customers to adopt on-chain funds, reducing friction.
• The fund's ecosystem includes key institutions from both the traditional finance (TradFi) and crypto sectors, aiming for interoperability and increased transparency.
• Other major fund managers, such as Fidelity and Grayscale, are also seeking SEC approval for similar Ethereum-based products, indicating a growing institutional interest in crypto.

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