$14T BlackRock To Venture Into DeFi On Uniswap, UNI Token Surges 28%

BlackRock, the world’s largest asset manager, is set to make an entry into the decentralized finance (DeFi) space with the launch of its BUIDL token on Uniswap. As part of the move, the firm will also purchase an undisclosed amount of UNI tokens, a revelation which led to a surge in the token’s price, climbing as much as 28%.

BlackRock To Launch BUIDL Token On Uniswap

According to a Fortune report, the world’s largest asset manager plans to launch its Treasury-backed digital token, BUIDL, onto Uniswap, where institutional traders will be able to trade the token. As part of this move, the firm will also purchase an undisclosed amount of Uniswap’s native token, UNI.

The BUIDL token, with a market cap of $1.8 billion, is already available on top-layer-1 networks such as Ethereum, Solana, and BNB. However, this marks the first launch on a DeFi platform, further expanding BlackRock’s ties to the crypto space and enabling on-chain trading of the token.

The UNI token notably surged on the back of this announcement. TradingView data shows that the token climbed as much as 28%, rising above $4. The DeFi token is now trading just below $4, still up over 19% on the day.

Securitize, which tokenized the BUIDL fund, also confirmed this move in an X post, noting that the fund’s integration into the top DeFi protocol would provide eligible, whitelisted investors with near-instant liquidity to swap between BUIDL and USDC, available 24/7. Securitize added that UniswapX’s RFQ framework will facilitate trades by sourcing competitive pricing from approved market participants and settling them atomically on-chain.

In a press release, Uniswap noted that Securitize Markets will facilitate trading for any BlackRock’s BUIDL investor who chooses to participate through UniswapX’s RFQ framework. This automated system enables participants to identify the most competitive quote from an ecosystem of whitelisted market makers, including Flowdesk, Tokka Labs, and Wintermute. Meanwhile, Uniswap also confirmed that BlackRock made a strategic investment in its ecosystem, likely referring to the purchase of UNI tokens.

The Convergence Between Tokenization and DeFi

BlackRock’s Global Head of Digital Assets, Robert Mitchnick, stated that this collaboration with Uniswap and Securitize is a notable step in the convergence of tokenized assets with DeFi. He added that the integration of BUIDL onto the top DeFi protocol marks a major leap into the interoperability of tokenized USD yield funds with stablecoins.

Securitize’s CEO noted that this brings the trust and regulatory standards of traditional finance (TradFi) to the speed and openness for which DeFi is known. “For the first time, institutions and whitelisted investors can access technology from a leader in the decentralized finance space to trade tokenized real-world assets like BUIDL with self-custody,” he added.

Uniswap’s CEO Hayden Adams highlighted how this move aligns with their mission to make exchange of value “cheaper, faster, and more accessible.” He added that enabling BUIDL on UniswapX with BlackRock and Securitize “supercharges” their mission by creating efficient markets, better liquidity, and faster settlement.