BounceBit, a financial infrastructure company, is tapping BlackRock’s USD Institutional Digital Liquidity Fund to create a real-world asset (RWA), yield strategy tool.
BounceBit has released a press release stating that the partnership combines traditional finance and blockchain infrastructure. This allows investors to take advantage of traditional returns with trading crypto derivatives.
According to the announcement, this strategy involves trading Bitcoin (BTC), stablecoins and BUIDL with BUIDL collateral. BounceBit claims that the strategy can increase total annual percentage yield for investors (APY) by 24 percent.
BUIDL, a BlackRock Private Fund is tokenized and available via Securitize Markets.
A post on the social media platform X stated that the strategy was “the first use-case of tokenized treasuries.”
Jack Lu is the founder and CEO of BounceBit.
The Bank for International Settlements, or BIS as it is known informally, said last month that tokenizing RWAs and putting them on the blockchains would strengthen the links between traditional finance (TradFi) and crypto.
BIS analysts state that RWAs, or tokenizing traditional assets onto distributed ledgers, are increasing the connection between TradFi (traditional finance) and DeFi.
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This article BlackRock BUIDL to power BounceBit RWA Yield strategy platform appeared first on the ICD.
