Injective blockchain has introduced a new tokenized index for BlackRock’s USD Institutional Digital Liquidity (BUIDL) fund. The index allows traders to access the fund through on-chain financial instruments, marking a leap in asset tokenization.
The index is a perpetual market that tracks the supply of a BUIDL fund rather than its price. This approach meets the growing demand for transparency in fund flows and provides insight into institutional crypto engagement.
Injectables (INJ) Price Soars After BlackRock BUIDL Fund Announcement
Eric Chen, co-founder and CEO of Injective Labs, emphasized the importance of the index.
“For the first time, institutions and retail users can directly access a new RWA offering that tracks a real fund led by BlackRock,” said Eric Chen, CEO of Injective Labs.
The introduction of the BUIDL index also had a positive impact on Injective’s native token, INJ, which immediately rose by 14% after the index was launched. At the time of writing, the price of INJ is up by about 10.80%, trading at $17.18.
Read more: What is the impact of Real World Asset (RWA) tokenization?
The BUIDL index operates on Injective’s decentralized exchanges, such as Helix, where traders can use leverage to go long or short on the index. Its price is adjusted based on changes in the BUIDL token supply, using a 1-hour time-weighted average price (TWAP) to reduce volatility from large token movements.
This development expands the availability of the BUIDL fund. Previously, it was an institutional investment product that required at least $5 million. As a result, there are only 18 BUIDL token holders, with the largest holding more than 33% of the fund, valued at approximately $178 million.
However, a wider audience can now access the BUIDL index with entry points as low as $1. This shift aims to democratize access to tokenized assets, potentially changing the way retail investors interact.
As of early September, the BUIDL fund boasts a market cap of over $517 million. In addition, the fund recorded a dividend payment of $2.1 million in July, which was a record monthly high.
The tokenization of assets, particularly US Treasuries through platforms such as BlackRock’s BUIDL and Franklin Templeton’s FOBXX, has contributed significantly to the market, raising a total of $2.15 billion.
Read more: How to Invest in Real Crypto Assets (RWA)?
This trend indicates strong interest in real asset markets and positions the BUIDL fund as a key indicator of institutional sentiment towards cryptocurrencies.
