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BlackRock, BUIDL, and Crypto

BlackRock, BUIDL, and Crypto

Chris Campbell

Posted April 01, 2024

Chris Campbell

It was only a couple of months ago -- February 9, to be exact -- that James and I recommended members of our Early Stage Crypto Investor (ESC) group buy a crypto project.

Not just any project.

This one is focused on tokenizing real world assets (RWAs).

And it’s growing long legs.

Toeknizing Everything

Our rationale? Tokenization is the next big thing. Big players are sitting up, paying attention. RWAs will soon have their day in the Sun. We want exposure.

And, now this:

BlackRock Launches a Fund

BlackRock decided to jump on the Ethereum bandwagon with their new money market fund, BUIDL.

Here’s the simple breakdown:

BUIDL is basically a stablecoin.

It pays investors daily dividends in the form of new tokens each month. The Fund puts all of its money into cash, U.S. Treasury bills, and repurchase agreements, so investors can earn returns while keeping the token on the blockchain. Investors can transfer their tokens to other approved investors at any time. They also have different options for how to store their tokens.

“This is the latest progression of our digital assets strategy,” Robert Mitchnick, BlackRock’s Head of Digital Assets, told Business Wire. “We are focused on developing solutions in the digital assets space that help solve real problems for our clients.”

And presto.

A Bowtie on a Pig

BUIDL is a step towards making traditional assets more accessible and efficient using blockchain.

It’s a big deal. Don’t get me wrong.

But, let’s be honest — it's like putting a bow tie on a pig.

Sure, blockchains can make old things more accessible…

But they also make new things possible. (What I’m more excited about.)

Ways to create, coordinate, and distribute value in ways we’ve never seen. 

To name a few:

Fractional ownership of intellectual property rights (IP-NFTs)… Blockchain-based supply chain tracking and authentication… Decentralized social media platforms with token incentives… Tokenized loyalty and rewards programs for businesses…

That’s the short-list.

The Real Action

The stuff that'll make crypto truly revolutionary probably won't be the familiar old-school financial products, even if that's where we're starting.

Crypto’s a baby.

Institutional adoption represents one of the biggest transfers of wealth from one paradigm to another in history.

But tokenized treasuries aren’t the reason I’m excited about crypto.

The real innovation will come from the wild, untamed, crypto-native stuff.

World-changing stuff.

Life-changing stuff.

The kind of stuff that can kickstart generational wealth. Or, at the very least, offers a nice big boost in the portfolio.

That’s the kind of stuff we’re on the hunt for.

And this Friday, we’re recommending a NEW token that we think has the best of both worlds.

We just have to check a couple more things out before it’s ready to roll.

(This one has NOTHING to do with Ethereum -- and everything to do with BlackRock.)

This time, it’s for Early Stage Crypto Investor members only.

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