Shortly following the release of the BUIDL tokens, FalconX, the first CFTC registered
dealer for digital asset swap, announced it would accept the institutional client
tokens as collateral on its trading platform. FalconX is a well suited partner for
BlackRock’s newly minted fund, merging the gap between traditional and digital
financial services. Their brokerage firm operates a digital assets derivative trading
desk and executed more than a third of the BTC creation purchases for ETF sponsors
on its inaugural day.
Another utility for BUIDL was recently announced by the licensed money transmitter
company Circle Internet Financial LLC (Circle). Circle, the issuer of the USD
supported and pegged stablecoin USDC, will allow BUIDL investors to transfer shares
of the fund to their company in exchange for USDC. The technological capability
from Circle through their on-chain smart contracts allows for BlackRocks clients to
diversify into the stablecoin marketplaces should they choose.
These latest developments further legitimize the utility of the private blockchain and
its tokens, exhibiting the ways in which institutional clients can further interact with
the ecosystem developed by BlackRock. Furthermore, it exemplifies how traditional
fintech and finance institutions can partner with digital finance. Although the
exposure to digital assets comes through second and third party methods, it presents
a plethora of opportunities for future projects and is, thus far, the only line of
progress in a gray legal arena until legislation dictates otherwise