Ethereum
Ethereum powered by BlackRock: a 100 million euro alliance that changes everything
4:30 p.m. ▪ 3 min reading ▪ by Ariela R.
The world of traditional finance is undergoing a transformation with BlackRock’s decision to favor public blockchains, notably Ethereum, for its blockchain-based financial products. This major change marks a turning point in the adoption of public blockchains. It also opens the door to deeper integration of this technology into the functioning of financial markets.
BlackRock and public blockchains: a new direction
Until now, BlackRock tended to favor private blockchains. However, experience has shown that public blockchains, such as Ethereum, offer significant advantages in terms of transparency, accessibility and governance.
Transparency on Ethereum
Transactions on Ethereum are visible to everyone, allowing investors to track capital flows in real time and ensure the proper execution of operations. This increased transparency is essential for:
- strengthen trust in blockchain-based financial products,
- attract a wider audience of investors.
Accessibility
Public blockchains (like Ethereum) are open to everyone. This allows anyone to participate in the network and interact with decentralized applications (dApps) built on them. This open accessibility promotes innovation and the creation of new financial products.
Governance
Ethereum and all other public blockchains are managed in a decentralized manner.
Explanation: users have a say in the development and evolution of the platform. This participatory governance promotes responsibility.
BlackRock’s first tokenization project on Ethereum
To consolidate its commitment to public blockchains, BlackRock launched its first tokenization project on the Ethereum blockchain.
This project consists of converting a traditional investment fund, “Institutional Digital Liquidity”, into digital tokens based on Ethereum. These digital tokens, denominated in USD Coin (USDC)offer investors transparent and secure access to the diversification of their portfolio.
BlackRock’s decision to adopt Ethereum is a strong signal of the growing maturity of the cryptocurrency market.
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Ariela R.
My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts and opinions expressed in this article belong solely to the author and should not be considered investment advice. Do your own research before making any investment decisions.