The world of traditional finance is changing with BlackRock's decision to favor public blockchains, particularly Ethereum, for its blockchain-based financial products. This major change of direction marks a turning point in the adoption of public blockchains. It also opens the door to deeper integration of this technology into the workings of financial markets.
BlackRock and public blockchains: a new milestone
Until now, BlackRock has tended to favor private blockchains. However, experience has shown that public blockchains, such as Ethereum, offer considerable advantages in terms of transparency, accessibility and governance.
Transparency on Ethereum
Transactions on Ethereum are visible to everyone, allowing investors to monitor capital flows in real time and to 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. Which allows anyone to participate in the network and interact with the built decentralized applications (dApps). This open accessibility promotes innovation and the creation of new financial products.
Governance
Ethereum as well as all other public blockchains are managed in a decentralized manner.
Decryption: 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 realize its commitment to public blockchains, BlackRock launched its first tokenization project on the Ethereum blockchain.
This project involves the conversion of a traditional investment fund, “Institutional Digital Liquidity”, into digital tokens based on Ethereum. These digital tokens, called 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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