Uniswap and BlackRock Partner to Launch BUIDL in DeFi

Uniswap (UNI) is one of the leading decentralized cryptocurrency exchanges. It has now announced a cooperation with the world’s largest asset manager, BlackRock, and is integrating its flagship RWA, BUIDL

Uniswap (UNI) surprised investors with a temporary price jump to just over $4, representing a 20 percent increase. This was due to a press release in which Uniswap Labs announced a collaboration with BlackRock. The world’s largest asset manager has made a “strategic investment” in the Uniswap ecosystem, the release vaguely stated without providing any figures. However, a specific project was also presented: BUIDL, a so-called Real World Asset (RWA), is joining Uniswap.

BUIDL on Uniswap is only for qualified investors

In this growth sector, BlackRock’s BUIDL is one of the three strongest financial products, according to data from rwa.xyz , surpassed only by gold as a risk-weighted asset (RWA). BUIDL replicates US Treasury bonds and thus provides investors with interest. The move to Uniswap marks “a step towards decentralized finance,” said a BlackRock spokesperson.

Until now, BUIDL has been available through a handful of crypto ecosystems, primarily centralized platforms for Ethereum, Solana, and Binance Coin (BNB). Uniswap, as a decentralized marketplace, is theoretically a novelty – but for now, according to the announcement, only investors who have previously demonstrated their professional status will be permitted to trade BUIDL.

Will RWAs prove themselves in decentralized marketplaces?

However, for Uniswap, the integration of BUIDL and the backing of BlackRock is still a significant development. Securitize, a market leader in asset tokenization, is also on board as the third partner in the project.

Uniswap can now demonstrate its technological capabilities in handling RWAs and building a customer base in this sector. Those interested in placing RWAs with Uniswap are explicitly encouraged to contact the team.

UNI is lagging far behind the glory days of 2021

Whether this strategy will bear fruit remains to be seen. Uniswap has long since been overtaken by Hyperliquid in the decentralized cryptocurrency exchange sector, and despite a brief resurgence, the UNI cryptocurrency has fallen more than 90 percent below its 2021 highs. BUIDL, as a regulated RWA, seems out of place at Uniswap, as it prevents anonymous access, which is likely to deter its core user base.

Conclusion: RWA like BlackRock BUIDL faces DeFi trial by fire at Uniswap

But Uniswap’s new flagship project shouldn’t be written off entirely. Perhaps qualified investors will seize the opportunity to register for BUIDL on the decentralized exchange and take a closer look at the DeFi environment.

According to Securitize, the minimum investment for BUIDL is five million US dollars, which is usually no problem for BlackRock clients. However, the typical Uniswap user thinks in much smaller amounts and could see the RWA as a sign of a future in which stocks, commodities, and other asset classes also enter the arena as tokenized assets on the platform.

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(Featured image by Adeolu Eletu via Unsplash)

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