BlackRock Tokenized BUIDL Fund Integrates Chronicle Verification Layer

BlackRock's BUIDL fund, the largest tokenized on-chain Treasuries vehicle managing around $1.7 billion in assets, has announced the addition of Chronicle Protocol as a new verification layer. This integration aims to provide real-time, independently verifiable proof of the assets backing the BUIDL tokens. By utilizing Chronicle's Proof of Asset system, the fund seeks to enhance transparency and trust within the cryptocurrency and decentralized finance (DeFi) markets.

Key Takeaways

Verification Enhanced: Chronicle Protocol brings a proof system that offers real-time, independently verified data on BUIDL’s assets, including their valuation and composition.
Institutional Support: Chronicle currently protects about $5 billion in value across various funds, highlighting its effectiveness in institutional contexts.
Market Benchmark: The partnership between BlackRock and Chronicle sets a new standard for transparency in tokenized funds, making it crucial for both DeFi and traditional finance (TradFi) integration.
Importance of Transparency: The new integration shifts traditional assumptions about tokenized fund verification, emphasizing independent, continuous assurance of asset backing.

Explore Blackrock Crypto and how the BUIDL fund integrates with Chronicle Protocol for real-time asset verification.

What Chronicle Adds to BlackRock BUIDL's Crypto Infrastructure

Chronicle Protocol's integration revolutionizes the verification process in tokenized fund infrastructure. Instead of depending solely on periodic reports from Securitize and BlackRock, the Chronicle Proof of Asset system draws data directly from custodians like BNY Mellon. It provides tamper-evident, on-chain attestations in almost real-time, improving transparency about what underpins BUIDL tokens.

According to Niklas Kunkel, the founder of Chronicle, this system introduces an “integrity layer” that offers "more granular and transparent data" across four crucial dimensions: valuation, asset composition, custody verification, and existence of assets. Daily net asset value (NAV) calculations and confirmations of Treasury holdings are made available through a public audit trail accessible to both smart contracts and human auditors.

Securitize's CEO, Carlos Domingo, states that "tokenization becomes meaningful when investors and protocols can independently verify what’s actually backing the product." This perspective positions Chronicle as a fundamental element of BUIDL's integration into the broader DeFi ecosystem, rather than simply an analytical tool.

Robert Mitchnick, BlackRock’s head of digital assets, echoes this sentiment by declaring, "Data oracles are a critical layer of market infrastructure for tokenized assets... We’re excited by Chronicle’s ability to unlock this for platforms and allocators seeking BUIDL fund data on-chain, strengthening confidence and transparency around tokenized assets." This highlights oracles as essential infrastructure, influencing the market's assessment of verification capabilities moving forward.

Chronicle's Integration

Chronicle's record in the industry further supports its credibility, as its Proof of Asset system currently secures around $8 billion in total value, including assets from the Janus Henderson Anemoy Treasury Fund and Superstate’s Short Duration US Government Securities Fund. Additionally, Securitize has implemented Chronicle verification in its Tokenized AAA CLO Fund. The BUIDL fund represents the largest and most notable mandate to date.

Key Takeaways

What Chronicle Adds to BlackRock BUIDL's Crypto Infrastructure

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