In the latest sign of the rapid convergence of Wall Street and crypto, the world’s biggest asset manager is moving into decentralized finance or DeFi. BlackRock on Wednesday revealed it will be bringing its Treasury-backed digital token BUIDL onto Uniswap, a leading DeFi platform, where it will be bought and sold by institutional traders. As part of the tie-up, BlackRock is also purchasing an undisclosed amount of Uniswap’s own UNI token.
The new arrangement, which is being undertaken with the tokenization firm Securitize, is a significant milestone for the DeFi sector, which many view as one of the most useful applications in crypto. Unlike traditional trading, which relies on centralized intermediaries to record and settle trades, platforms like Uniswap rely on smart contracts to match buyers and sellers via liquidity pools and automated market makers. Currently, there is around $100 billion worth of capital sitting on DeFi platforms.
The decision by BlackRock to list its BUIDL token, which launched in 2024 and boasts a total market value of around $1.8 billion, reflects a major vote of confidence in DeFi by one of the finance industry’s most influential firms.
The practical impact of Uniswap adding BUIDL to its platform is likely to be minor at first, though, since the arrangement involves Securitize creating a whitelist of eligible institutions that can participate in the DeFi trading. The firm is also whitelisting a handful of market makers, including longtime crypto liquidity provider Wintermute, to facilitate trading. Meanwhile, access to BUIDL is restricted to qualified purchasers, a legal designation for those with assets of $5 million or more.
