Stablecoin provider Circle has recently introduced a new feature that allows holders of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) to convert their shares into USDC through a smart contract. BUIDL is BlackRock’s first tokenized fund, which invests in cash, U.S. Treasury bills, and repurchase agreements. The shares are represented by blockchain-based tokens, and dividends are distributed directly to investors’ wallets as new tokens each month. Circle now offers a seamless and round-the-clock off-ramp service for BUIDL investors, allowing them to easily convert their shares into USDC on the secondary market. USDC provides a trusted and transparent method for investors to sell their BUIDL shares while still holding digital dollars. Jeremy Allaire, the CEO of Circle, believes that tokenization of real-world assets is an emerging product category that offers investors the ability to quickly exit tokenized assets, reducing costs and eliminating friction. BlackRock launched BUIDL last month, emphasizing the importance of tokenization in its digital asset strategy. By tokenizing the fund, BUIDL offers investors various benefits, including the ability to issue and trade ownership on a blockchain, increased access to on-chain offerings, instant and transparent settlement, and transfers across platforms.
