MakerDAOs Spark to invest $500 million in BlackRocks BUIDL fund
Spark has announced that BlackRock, Superstate, and Centrifuge are the winners of its Tokenization Grand Prix. The goal is to allocate $1 billion in tokenized assets, with BlackRocks BUIDL fund set to receive half of it.
The competition, launched in July 2024, allocated funds through the Spark Liquidity Layer (SLL). The initiative aimed to integrate real-world assets (RWAs) to diversify Sparks balance sheet while expanding stablecoin adoption in DeFi.
The final allocation remains subject to Sky (formerly MakerDAO) governance approval, with a vote scheduled for April 3.
If approved, the initiative will also invest $300 million in Superstates USTB and $200 million in Centrifuge-Anemoy Janus Hendersons JTRSY.
Currently, the Spark Liquidity Layer holds USDC, USDS, sUSDS, USDe, and sUSDe. The protocol will use these stablecoins to add BUIDL, USTB, and JTRSY.
Adding RWAs to the treasury
The competition attracted 39 applications, reviewed by Steakhouse Financial, a firm specializing in RWAs within the Spark ecosystem.
Applicants were assessed based on pricing transparency, liquidity levels, and strategic alignment with Sparks objectives.
Spark picked each of these RWA tokens backed by US Treasury securities, suggesting a preference for liquid and conservative assets.
BUIDL is offered by BlackRock and tokenized by Securitize. The money fund invests in US Treasury bills, repurchase agreements, and cash.
BUIDL is the largest tokenized money fund, with over $1.2 billion in market cap as of March 18. Sparks incoming investment could propel it close to $2 billion.
Meanwhile, Superstates USTB focuses on short-duration US Treasury bills maturing in six months or less, ensuring a predictable and secure yield. It is significantly smaller than BUIDL, with $370 million participation in the market.
Lastly, Centrifuge-Anemoy Janus Hendersons JTRSY allocates money to a short-duration US Treasury fund that reinvests in new issuances as existing securities mature. With a market cap of $32.4 million, JTRSY is also the smallest of the three tokenized funds potentially to receive Sparks investment.
If approved, Sparks investments in BlackRock/Securitize, Superstate, and Centrifuge will mark a significant step in integrating tokenized RWAs into DeFi infrastructure.
The post MakerDAOs Spark to invest $500 million in BlackRocks BUIDL fund appeared first on CryptoSlate.
Read more: https://cryptoslate.com/makerdaos-spark-to-invest-500-million-in-blackrocks-buidl-fund/
Text source: CryptoSlate
