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Following Thursday's spot Ethereum ETF approval, the cryptocurrency linked to real-world assets (RWAs) tokens is surpassing all-time highs — and the CEO of a BlackRock-backed RWA firm told Decrypt that the approval is significant. Prerequisites for asset tokenization on Ethereum.
The Ondo Financial Management token has risen 16 percent to $1.10 in the past 24 hours—leading the crypto market's top 100 coins by market value at the time of writing. CoinGecko.
The project focuses on institutional-level financial products and services, such as tokens that offer US dollar yields or exposure to US Treasuries. In 2022, Pantera Capital and Peter Thiel's Founders Fund Mr A $20 million Series A funding round in the project.
Confirming Ethereum's regulatory status as a commodity, the approval of multiple ETFs has major implications for companies focused on building digital representations of assets traded on the chain and related infrastructure, said Securities CEO Carlos Domingo. Decrypt.
“The most important thing here is not being able to trade Ethereum ETFs,” he said of Thursday's approval. “Ethereum, at least from an institutional perspective, is. 1716690385 It is completely safe to use because there is no risk that the gas token, in this case ETH, is actually safe.”
In March, Ondo he said. US Treasury-backed token (OUSG) will mobilize $95 million in funds to support the BlackRock token BUIDL fund. Shares in BlackRock's BUIDL fund, established through securitization, are represented by an Ethereum-based token, pegged to a price of $1, and fund subscribers receive a yield in the form of multiple tokens.
Ondo's move to the BlackRock BUIDL fund was purely for efficiency, Domingo said. The CEO previously backed the OUSG token with BlackRock's iShares Short Treasury Bond ETF, explaining that managing the product is relatively messy.
“They didn't have good control over the underlying asset, with quick delivery, quick redemption. [and] With chain visibility — that's where the money is,” Domingo said. “One of the uses for BUIDL is that it's a base layer for people to build products on top of.”
Ondo did not immediately respond to a request for comment. Decrypt.
BlackRock CEO Larry Fink describes tokenization as “The next generation of marketing“Believing that from 2022, crypto-tech will offer financial market participants “reduced fees” and “faster settlements”.
Domingo describes Ondo as “very innovative,” and the use of Ondo's BUIDL to redeem Ondo's products falls on five different levels—between the brokers and the custodians who protect the assets. In the past, he said, it would take them “two or three days to get the money.”
In light of the adoption of Ethereum ETFs, Domingo said he expects more staid financial organizations to branch out into the tokenization space with a cloud of regulatory jitters that has recently been removed.
“in my opinion, [this] It is more relevant for tokenization than Bitcoin ETF,” he said. “As I said, it makes that very clear [Ethereum is] It is not a commodity, and therefore using the public Ethereum blockchain is secure from a regulatory perspective.
Edited by Andrew Hayward.
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