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BlackRock: New Financial Token BUIDL Finds its First Major Customer

BlackRock launched BUIDL, a project utilizing Ethereum blockchain to earn interest on USD investments in real US bonds and low-risk instruments. Ondo Finance, transferring $95 million to BUIDL, highlights its practicality over traditional ETFs. BUIDL requires a $5 million minimum investment, but OUSG, based on BUIDL, lowers it to $100,000, making US bond investments more accessible.




In the crypto industry, RWA (real-world assets) in token form are treated as a top topic. The classic financial industry and the advantages of blockchain solutions should come together here.

The world’s largest asset manager BlackRock received a lot of media attention last week for launching a corresponding project under the abbreviation BUIDL. BlackRock explained the concept in a press release : BUIDL is based on the Ethereum (ETH) blockchain and offers investors the opportunity to earn interest on investments in US dollars. BUIDL reflects real investments in US bonds and comparable low-risk financial instruments. This makes BlackRock a pioneer of tokenized RWAs.

The concept can now welcome its first major customer, Ondo Finance. On X announced that it had transferred $95 million of its (customer) funds to BUIDL. Ondo already had a token, OUSG, that relies on US bonds and which in turn is based on a BlackRock ETF (iShares Short Treasury Bond). But ETFs are only traded on the stock exchanges during working hours on weekdays. This is different for BUIDL as a token in the Ethereum ecosystem with constant availability and that is why Ondo is now switching to the new BlackRock offer with OUSG, it says in an accompanying blog post .

The interaction between Ondo Finance and BlackRock is interesting for private investors for a second reason. Because BUIDL basically requires a minimum investment of $5 million for BlackRock to accept it. OUSG overcomes this hurdle and “only” requires a minimum investment of $100,000. This means that two advantages are used: 24/7 blockchain processing of investments in US government bonds via BUIDL and the option of smaller investment amounts via OUSG.

Read more about BlackRock and BUIDL and find the latest financial news of the day with our companion app Born2invest.

Conclusion: BlackRock promotes RWA and tokenization with BUIDL

The principle of incorruptible and non-stop functioning blockchain solutions is slowly finding its way into everyday life; test runs, for example in notaries or administration, are well advanced. With BUIDL, BlackRock is now demonstrating how an attractive bundle for tokenized RWAs can score points in practice.

This is a mixed blessing for the crypto industry: BlackRock as a loudspeaker with an audience on Wall Street is a kind of accolade – but at the same time there is also competition for all the crypto projects that want to open up new business areas with RWA tokens.


(Featured image by Traxer via Unsplash)

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Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.