The BlackRock USD Institutional Digital Liquidity Fund was incorporated in the British Virgin Islands and will be launched in partnership with Securitize, a tokenization firm.

BlackRock is continuing its journey into the digital asset industry following its Spot Bitcoin ETF launch earlier this year. The company’s Bitcoin ETF has been one of the best-performing Bitcoin products out of the field of new launches in 2024.

USDC, or USD Coin, is a type of cryptocurrency known as a stablecoin. Its value is pegged to the US Dollar, aiming to combine the flexibility of cryptocurrencies with the stable value of traditional currencies.

Built for rapid, global payments and 24/7 financial markets, USDC is a regulated, digital currency that can always be redeemed 1:1 for US dollars.

Here’s how USDC is commonly used:

1. Transfer of Money: USDC allows for quick and relatively low-cost transfer of funds across borders, without the need for traditional banking systems.

2. Hedge Against Volatility: Since its value is tied to the US Dollar, USDC is often used by cryptocurrency traders and investors as a safe haven to protect against the high volatility of other cryptocurrencies.

3. Transactions and Payments: Businesses and individuals use USDC for transactions and payments, as it offers a stable value and can be used in a decentralized manner.

4. Part of DeFi Ecosystem: USDC is widely used in the DeFi (Decentralized Finance) ecosystem for activities like lending, borrowing, and earning interest, as it offers a stable alternative to more volatile cryptocurrencies.

5. Smart Contracts: Being a digital asset, USDC can be integrated into smart contracts on various blockchain platforms, enhancing the functionality of decentralized applications.

6. Digital Dollar Equivalent: It's used as a digital equivalent of the US dollar on various blockchain networks, making it more accessible for digital asset management and investment.

USDC operates on several blockchain networks, offering the security and transparency of blockchain technology, along with the stability of a fiat currency.

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