Asset management giant BlackRock intends to accelerate the integration of blockchain into traditional finance to streamline the circulation of tokenized assets. Its tokenized fund BUIDL is already used as collateral on the cryptocurrency market, a practice still complex to replicate in the conventional financial sector. Major obstacles include acceptance of these instruments by banks and institutions, adaptation of existing market infrastructure, and regulatory clarity. A International Monetary Fund report highlights platform fragmentation issues, legal uncertainties, and connectivity difficulties with current financial infrastructure. This transformation aims to change the rails on which asset ownership circulates, rather than simply creating digital versions of existing assets.
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