BlackRock has ventured into the digital asset space by announcing its first Real-World Asset (RWA) tokenization fund on the Ethereum network, marking a significant step into blockchain utilization for the finance giant. Alongside this, BlackRock has also invested in Securitize, a move that underscores its commitment to the burgeoning digital market. Concurrently, the UN Security Council has issued its latest report on the enforcement of sanctions against North Korea on March 20th.
BlackRock Embraces RWA Tokenization
BNY Mellon has been designated as the custodian for BlackRock’s newly announced fund, with Securitize serving both as a transfer agent and the platform for tokenization. The initiative also sees collaboration with key players in the digital banking and security sectors, including Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks.
The specifics of BlackRock’s investment in Securitize were not disclosed in the press release; however, it’s described as a “strategic investment.” Robert Mitchnick, BlackRock’s Head of Digital Assets, highlighted the launch as a pivotal development in the firm’s digital assets strategy, aimed at addressing client needs through innovative digital asset solutions.
The speculation surrounding a potential tokenized fund by BlackRock was sparked by a regulatory filing with Securitize, particularly as blockchain transactions were mentioned, hinting at a new avenue for funding.
BlackRock now joins other financial institutions like Citi, Franklin Templeton, and JPMorgan in exploring blockchain technology. The move reflects a growing trend of integrating blockchain with traditional finance (TradFi), evidenced by the rise of tokenized US Treasuries in the crypto space.
North Korea and Cybersecurity Concerns
The UN Security Council’s report highlights a concerning aspect of North Korea’s financial activities, estimating that around 50% of the country’s foreign exchange earnings stem from cyberattacks. These include significant breaches targeting crypto-related businesses, resulting in losses around $3 billion.
Covering the period from July 2023 to January 2024, the report delves into North Korea’s sanction evasion tactics. While the findings are not legally enforceable, they could prompt the Security Council and its member states to consider imposing additional sanctions on entities or individuals found in violation.
This dual narrative of innovation in digital asset management by BlackRock and security concerns underscored by the UN’s report on North Korea provides a snapshot of the current state of global finance and cybersecurity.
Not a financial advice.