Ethereum powered by BlackRock: A €100 million alliance that changes everything

The world of traditional finance is in the midst of a transformation with BlackRock’s decision to favor public blockchains, especially Ethereum, for its blockchain-based financial products. This major shift marks a turning point in the adoption of public blockchains. It also opens the door to a deeper integration of this technology into the workings 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, like 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:

• strengthening trust in blockchain-based financial products,
• attracting a broader 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 fosters 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 accountability.

BlackRock’s first tokenization project on Ethereum

To solidify its commitment to public blockchains, BlackRock launched its first tokenization project on the Ethereum blockchain.

This project involves converting a traditional investment fund, “Institutional Digital Liquidity,” into digital tokens based on Ethereum. These digital tokens, denominated in USD Coin (USDC), provide investors with transparent and secure access to portfolio diversification.

BlackRock’s decision to adopt Ethereum is a strong signal of the growing maturity of the cryptocurrency market.