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Former Grayscale Exec Predicts TradFi Shift to Public Blockchain

Celisa Morin recognizes the potential legal issues associated with tokenizing assets on public blockchains rather than on more KYC and AML-compliant private networks. Nevertheless, she maintains that many firms are likely to follow BlackRock's lead.

  • Celisa Morin suggests that BlackRock's use of the public Ethereum blockchain for its tokenized fund could inspire more TradFi institutions to tokenize assets on public rather than private chains.
  • Morin acknowledges potential legal concerns with public blockchains but believes many firms will follow BlackRock's lead.

Head of international law firm Reed Smith’s crypto department and former Vice President of Platform Distribution at Grayscale, Celisa Morin, in an interview with Cointelegraph, said that a BlackRock-led narrative among traditional finance (TradFi) institutions could lead more firms to tokenize assets on public chains rather than private ones.

Additionally, she said that larger traditional financial institutions should also follow the lead of the asset management giant.

BlackRock launched the BlackRock USD Institutional Digital Liquidity (BUIDL) Fund, its first tokenized fund, on the Ethereum blockchain. Also, it is believed that BlackRock's decision to utilize the public Ethereum blockchain rather than private chains such as JPMorgan’s Onyx enhances interoperability and programmability.

BUIDL offers investors a taste of U.S. dollar yields by dipping into cash, U.S. Treasury bills, and repurchase agreements. According to Dune Analytics, the BUIDL fund now has more than $292 million in assets under management (AUM) and over 24% market share (at the time of writing).

Not to mention, Morin recognizes the potential legal issues associated with tokenizing assets on public blockchains rather than on more KYC and AML-compliant private networks. Nevertheless, he maintains that many firms are likely to follow BlackRock's lead.

During the interview, Morin was also questioned about her views on the potential spot Ethereum ETF; she expressed skepticism and mentioned that it's unlikely a spot Ether ETF would receive approval in May.


Edited by Harshajit Sarmah

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