In a clear sign that Wall Street and crypto are drawing closer, BlackRock Inc. (NYSE: BLK) is taking a decisive step into decentralized finance.
The world’s largest asset manager said Wednesday it will list its Treasury-backed digital token, BUIDL, on Uniswap, a leading DeFi platform. Institutional traders will be able to buy and sell the token through Uniswap’s blockchain-based system. Additionally, BlackRock will purchase an undisclosed amount of Uniswap’s UNI token as part of the arrangement.
BlackRock is working with tokenization firm Securitize to complete the integration. The move marks a significant milestone for decentralized finance, or DeFi, which many in crypto view as one of the sector’s most practical applications. Unlike traditional markets, DeFi platforms use software code called smart contracts to execute trades automatically. Consequently, they remove centralized intermediaries that typically record and settle transactions.
Uniswap operates through liquidity pools and automated market makers. These systems match buyers and sellers without relying on traditional brokers. Currently, roughly USD$100 billion in capital sits on DeFi platforms. However, BlackRock’s entry signals that large institutions see potential beyond speculative trading.
BlackRock launched BUIDL in 2024. The token represents a fund backed by short-term U.S. Treasuries and carries a market value of about USD$1.8 billion. Additionally, the firm said the token will now trade through UniswapX, a version of the platform tailored for more sophisticated transactions. Executives described the integration as a step toward blending tokenized funds with stablecoins.
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Small pool of traders will participate early
The practical impact will likely remain modest at first. Securitize will create a whitelist of approved institutions that can access BUIDL on Uniswap. Furthermore, the firm will whitelist select market makers, including crypto liquidity provider Wintermute, to support trading activity. Access to BUIDL remains limited to qualified purchasers, a legal category for investors with at least USD$5 million in assets.
Consequently, only a small pool of traders will participate in early transactions. However, industry executives view the rollout as a test case for broader adoption. They expect the framework to support additional tokenized assets in the future. Additionally, they say the same infrastructure could eventually accommodate retail investors.
Securitize CEO Carlos Domingo said large asset managers prefer to move cautiously. He explained that institutions want to start with qualified investors before expanding further. However, he added that the underlying technology can also support retail products over time.
The partnership brings together two firms from opposite ends of the financial spectrum. BlackRock stands as a pillar of traditional finance with trillions under management. Conversely, Uniswap built its reputation as a decentralized exchange popular among crypto traders, including high-risk participants often called “degens.”
Uniswap founder and CEO Hayden Adams said discussions with BlackRock stretched over 18 months. Meetings took place at BlackRock’s offices in Manhattan’s Hudson Yards and at Uniswap’s colorful workspace in SoHo. Additionally, Adams credited former Uniswap COO Mary-Catherine Ladner, who previously worked at BlackRock, with helping structure the deal.
Adams declined to disclose how much UNI BlackRock purchased. The UNI token trades near USD$3.30 and carries a market capitalization above USD$2 billion.
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Investors will benefit from lower costs
Adams also said tokenization can reduce settlement times and improve collateral efficiency. Consequently, he believes investors will benefit from lower costs and faster transactions. He described the shift as a structural change rather than a short-term trend.
BlackRock’s Global Head of Digital Assets, Robert Mitchnick, said the agreement advances the integration of tokenized funds with decentralized infrastructure. He added that linking BUIDL with UniswapX improves how tokenized yield products interact with stablecoins. Additionally, he suggested that stablecoins will play a growing role in mainstream finance.
Meanwhile, the broader DeFi sector has struggled to shake its reputation for volatility and regulatory uncertainty. However, BlackRock’s involvement could lend credibility to platforms like Uniswap. The collaboration illustrates how traditional finance and crypto infrastructure increasingly intersect, even as regulatory frameworks continue to evolve.
