Injective Labs, the cutting-edge firm behind the digital asset INJ, has announced a revolutionary tokenized index linked to the BlackRock USD Institutional Digital Liquidity Fund.
The innovative BUIDL Index closely monitors the fluctuation in the supply of BUIDL tokens that make up the BUIDL fund.
This supply of BUIDL tokens directly impacts the price of the index perpetual; hence, any changes in supply result in corresponding movements in the index price.
Eric Chen, the CEO of Injective Labs, expressed in a blog post,
“The BUIDL Index highlights the vast potential of Injective’s infrastructure in facilitating the seamless transition of traditional finance to fully decentralized platforms.”
Initially launched on Ethereum [ETH], the BUIDL fund garnered significant attention after surpassing a similar offering managed by Franklin Templeton within the first six weeks of its launch in March.
Breaking Ground as the First Tokenized Index for BlackRock’s BUIDL Fund
The BUIDL Fund, valued at $514 million under management according to data from rwa.xyz, is the largest treasury fund tokenized on a blockchain.
Typically, this fund requires a minimum investment of $5 million, limiting access to wealthy investors, with only 20 holders as of the latest count.
Injective’s BUIDL Index aims to overcome this entry barrier, enabling investors of all sizes to access U.S. dollar yields on-chain.
Speculators can take long or short positions on the fund’s supply changes based on their market predictions, with the index exclusively available through native Injective DEXs, offering leverage options.
Enhancing Asset Tokenization Presence at Injective
As a Web3 finance-focused interoperable L1 blockchain, Injective has been pioneering the realm of DeFi applications.
The introduction of the BUIDL Index, powered by the open data marketplace Stork, marks a significant milestone in the evolution of on-chain finance.
Last month, Injective unveiled Altaris – a major ecosystem upgrade following Volan introduced in January.
The Altaris mainnet debut included several enhancements, such as the initial RWA oracle module, unlocking Injective’s capacity to provide innovative tokenized asset offerings.
In a recent development this week, Chainlink integrated Injective’s data streams to empower blockchain enthusiasts and developers in shaping the future of global markets on-chain.
INJ Price Movement
The BUIDL Index holds the potential to draw interest from both institutional and retail traders, which could drive up demand for INJ, the native token of Injective.
Expanded usage of Injective’s dApps and financial tools could lead to increased liquidity and engagement, positively influencing the price of INJ.
In response to the launch of the BUIDL index on September 4, the INJ token price briefly surged, testing its monthly close near $17.60 but faced resistance at that level.
Data from TradingView indicates that the INJ/USDT pair has been moving within a falling wedge pattern on the weekly chart.
At the time of writing, INJ was trading at $16.68, reflecting a 6.12% decrease over the past seven days. Year-to-date, INJ has dropped by 53%, trailing behind the gains made by Bitcoin [BTC] and other major altcoins during this period.