According to Injective, this index represents the first perpetual market. A previously unavailable method of accessing the BUIDL Fund will now be available to users.
BlackRock’s first tokenized offering on a public blockchain is the BUIDL Fund, also known as the BlackRock USD Institutional Digital Liquidity Fund. U.S. Treasury bonds and other assets are available to institutional investors.
BUIDL invests in U.S. Treasury bills, cash, and repurchase agreements, allowing investors to earn yield while maintaining their holdings on the blockchain.
Though the fund has a correlation with the crypto industry, it has maintained a positive trajectory despite market turmoil. As of today, it is the largest tokenized fund, with over $500 million under management, according to Injective.
The BUIDL Fund previously required a minimum investment of $5 million. The BUIDL Index now allows users to access the fund with as little as $1.
This is the first perpetual index market of its kind that tracks the supply of the BUIDL fund itself. The BUIDL fund is BlackRock’s first tokenized fund, giving holders U.S. dollar yields. The BUIDL Index will be exclusively accessible via a range of different dApps only on Injective, such as Helix, offering a new gateway to the tokenized fund with the lowest fees and fastest speeds in the crypto space.
Making tokenized assets more accessible
Injective is providing the BUIDL Index exclusively on its blockchain through a variety of decentralized applications. As a result, traders will be able to access tokenized assets with leverage and track the fund’s supply rather than just the price.
Based on market trends, traders can take long or short positions. The fund’s price is adjusted hourly to reduce volatility based on the fund’s mark price. Markets depend on the fund’s mark price, which fluctuates intraday based on supply changes, allowing users to take positions.
The collaboration was helped by Stork, a decentralized price feed provider that was also a part of Injective’s recent upgrade to the Altaris Mainnet.
Injective is a decentralized finance (defi) application that initially garnered attention for its innovative approach to financial markets. The app leverages blockchain technology to make trading accessible and offer a range of features including decentralized exchanges, derivatives, and cross-chain trading. The platform also claims to eliminate intermediaries, reducing costs, and enhancing transparency.
Disclaimer: Do not take the content on this site as investment advice, NFA.
TAGS IN THIS STORY cryptonews, cryptoslate, cryptorank, Cointelegraph, Micah Zimmerman
Image Credits: Shutterstock, Pix, Finbold
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