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UNI Soars 30% Amid Strategic Investment from BlackRock

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Uniswap and Securitize have announced a strategic partnership with BlackRock to provide DeFi liquidity for BlackRock’s tokenized fund.

Uniswap Labs and Securitize have announced a new partnership with financial giant BlackRock to enhance DeFi liquidity for institutional investors through BlackRock’s USD Institutional Digital Liquidity Fund, also known as BUIDL.

Following the announcement, the price of Uniswap’s native token, UNI, surged by 27% from around $3.30 to $4.36, before retracing to $3.81 by press time.

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UNI 24-hour price chart. Source: CoinGecko

The collaboration will enable on-chain trading of BUIDL’s share on UniswapX, an auction-driven trading protocol, unlocking new liquidity options for BUIDL holders, Uniswap said in a blog post today.

Tokenization platform Securitize, for its turn, will facilitate trading for BUIDL investors who elect to participate through UniswapX’s framework.

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“For the first time, institutions and whitelisted investors can access technology from a leader in the decentralized finance space to trade tokenized real-world assets like BUIDL with self-custody,” said Carlos Domingo, CEO of Securitize.

As part of the collaboration, BlackRock has also made a strategic investment within the Uniswap ecosystem, the blog post reads, though no details were given.

The collaboration comes shortly after investment management firm Franklin Templeton teamed up with Binance to launch tokenized collateral program. As The Defiant reported earlier, eligible clients can now use tokenized money market funds as off-exchange trading collateral.

This article was generated with the assistance of AI workflows.

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Crypto World

Stablecoins Do Not Threaten Banking Just Yet: Analyst

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Stablecoins Do Not Threaten Banking Just Yet: Analyst

The impact of stablecoins on the banking sector appears “limited” at the current phase of the adoption cycle, but banks could face increasing competition and an erosion of market share as the stablecoin sector and tokenized real-world assets (RWAs) grow in market capitalization. 

“So far, the use of stablecoins remains limited, but their market capitalization exceeded $300 billion at the end of last year,” Abhi Srivastava, associate vice president of Moody’s Investors Service Digital Economy Group, told Cointelegraph.

The stablecoin market cap has surged past $300 billion. Source: RWA.xyz

The role of stablecoins in payments, cross-border commerce and onchain finance is “expanding,” despite their currently limited role, Srivastava said, adding that existing payment systems in the US are already “fast, low-cost and trusted.” He said:

“For the banking sector, at this stage, disruption risk appears limited. In the near term, US rules that prohibit stablecoins from paying yield mean they are unlikely to replace traditional deposits at scale domestically.”

However, over time, growing adoption of stablecoins and tokenized RWAs, traditional or physical financial assets represented on a blockchain by a token, could place “pressure” on the banking sector, leading to deposit outflows and reduced lending capacity, he said.

Stablecoin regulatory policy has become a hot-button issue among crypto industry executives and those in the banking sector, with fears that yield-bearing stablecoins could erode banking market share proving to be a stumbling block for the CLARITY crypto market structure bill in Congress. 

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Related: Stablecoins behave like FX markets as liquidity splits: Eco CEO

CLARITY Act stalled, as banks fight yield-bearing stablecoins

The Digital Asset Market Clarity Act of 2025, also known as the CLARITY Act, is a comprehensive crypto market regulatory framework that establishes an asset taxonomy, regulatory jurisdiction and oversight over the crypto markets.

The CLARITY crypto market structure bill. Source: US Congress

It is now stalled in Congress after a group of crypto industry companies, led by cryptocurrency exchange Coinbase, publicly stated opposition to earlier drafts of the bill.

A lack of legal protections for open-source software developers and a prohibition on yield-bearing stablecoins were among some of the most contentious issues cited by crypto industry opponents of the legislation.

Several attempts have been made by US lawmakers and the White House to negotiate a bill acceptable to both the crypto industry and the bank lobby.

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Earlier this month, North Carolina Senator Thom Tillis said he plans to release an updated draft bill proposal that would be acceptable to both sides; however, the bill has reportedly received pushback, according to Politico, and has yet to be publicly released. 

However, other crypto industry executives and market analysts have warned that if the CLARITY Act fails to pass, it could open the crypto industry up to future regulatory crackdowns by hostile lawmakers and officials.

Magazine: Stablecoins will see explosive growth in 2025 as world embraces asset class