Investors in asset manager BlackRock's tokenised fund BUIDL can now exchange their holdings for stablecoins such as USDC on weekends and outside bank business hours.
On Nov. 13, blockchain media outlet Cryptopolitan reported that Securitize and Ethena launched a liquidity service for BUIDL investors who meet eligibility requirements. Securitize will operate it and Ethena will support it.
Approved investors can exchange BUIDL for supported stablecoins or convert stablecoins into BUIDL. Approved holders had previously been able to transfer tokens on-chain around the clock, but dollar redemptions were processed on business days. The new service provides a stablecoin exchange channel separate from existing redemption procedures that can be used outside business hours.
The liquidity limit is up to $100 million. Initial liquidity totals $50 million, consisting of $25 million each in USDC and BUIDL. An additional $50 million is designed to be supplied within about 1 hour, but whether it is actually supplied depends on service terms, capacity and fund availability.
BUIDL is a tokenised fund that invests in short-term U.S. Treasuries and overnight repurchase agreements. It targets a net asset value of $1 per token but does not guarantee it. Only investors who pass know-your-customer and anti-money laundering checks and are registered on an approved list can use it.
Carlos Domingo (카를로스 도밍고), co-founder and CEO of Securitize, stressed that tokenisation is a process of increasing usability beyond putting assets on-chain. Guy Young (가이 영), founder of Ethena Labs, said that because digital assets trade without pause, institutional liquidity provision systems should also align with that.
The two companies have also worked together on USDtb, a digital dollar that uses BUIDL as a main collateral asset. With the new service, BUIDL investors now have an additional way to secure stablecoins when traditional financial markets are closed. The actual exchange size and whether transactions are processed may vary depending on liquidity and operating conditions at the time.
Today, we’re launching a $100M 24/7 liquidity facility for @BlackRock's BUIDL with @ethena. Supported by Ethena and operated through Securitize, it enables eligible investors to exchange between BUIDL and supported stablecoins, including USDC, outside traditional market hours. https://t.co/TjZgvyTLEM
