Financial Infrastructure Firm BounceBit Partners with BlackRock for New Real-World Assets Yield Strategy

Financial infrastructure firm BounceBit has recently announced a strategic collaboration with BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) to introduce a cutting-edge real-world assets (RWA) yield strategy tool.

Combining traditional finance with blockchain infrastructure, this innovative partnership enables investors to harness traditional yields while engaging in crypto derivatives trading.

As outlined in a press release by BounceBit, the strategy involves the execution of Bitcoin (BTC) and stablecoin trades with BUIDL as collateral, potentially boosting total annual percentage yield (APY) for investors by up to 24%.

BUIDL, a private fund managed by BlackRock, has been tokenized by Securitize and is accessible through Securitize Markets.

Described as the first active use-case for tokenized treasuries, this strategy has garnered attention and praise from industry experts and enthusiasts alike.

Jack Lu, the Founder & CEO at BounceBit, expressed his enthusiasm for this groundbreaking approach, stating, “This innovative approach demonstrates what is possible when investors simultaneously capture both U.S. dollar yields and funding rate arbitrage returns, potentially creating opportunities for institutional investors seeking sustainable USD-denominated yield generation across market cycles.”

Recent insights from the Bank for International Settlements (BIS) have highlighted the significance of tokenizing RWAs on blockchains to strengthen the ties between crypto and traditional finance (TradFi).

In a detailed paper addressing the financial stability risks associated with crypto, BIS analysts emphasized that the tokenization of RWAs is fostering closer connections between TradFi and decentralized finance (DeFi).

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