Injective Labs, the innovative company dedicated to research and development tasks for Injective [INJ], has unveiled a revolutionary tokenized index for the BlackRock USD Institutional Digital Liquidity Fund.
The BUIDL Index monitors the changes in the supply of BUIDL tokens that make up the BUIDL fund.
This supply of BUIDL tokens directly impacts the value of the index perpetual. In other words, when the supply goes up or down, the index price follows suit accordingly.
In a recent blog post, Eric Chen, CEO of Injective Labs, expressed,
“The BUIDL Index demonstrates the immense potential of Injective’s infrastructure in bringing traditional finance onto fully decentralized platforms.”
Having been launched on Ethereum [ETH], the BUIDL fund gained significant attention after surpassing a similar product managed by Franklin Templeton within the first six weeks since its introduction in March.
First Tokenized Index for BlackRock’s BUIDL Fund
The BUIDL Fund stands as the largest treasury fund tokenized on a blockchain, managing assets valued at $514 million, as per data from rwa.xyz.
Traditionally, this fund demands a minimum investment of $5 million, limiting access to wealthy investors, currently only counting 20 holders.
Injective’s BUIDL Index addresses this entry barrier by providing an entry point for investors of all sizes to access U.S. dollar yields on-chain.
Traders can speculate on the fund’s supply changes by taking long or short positions based on their market predictions. Moreover, the index will be exclusively accessible via native Injective DEXs, allowing speculators to utilize leverage.
Injective’s Increasing Role in Asset Tokenization
As a Web3 finance-focused interoperable L1 blockchain, Injective has been leading the way in empowering DeFi applications.
The debut of the BUIDL Index, fueled by open data marketplace Stork, marks a significant moment in the progress of on-chain finance.
Notable upgrades, including the first RWA oracle module, unveiled in the recent Altaris mainnet release, have strengthened Injective’s potential to offer innovative tokenized assets.
In another development this week, Chainlink has integrated Injective’s data streams, empowering blockchain enthusiasts and developers to shape the future of global markets on-chain.
Injective [INJ] Price Movement
The BUIDL Index has the potential to attract both institutional and retail investors, potentially boosting demand for Injective’s native token, INJ.
Increased utilization of Injective’s dApps and financial tools could enhance liquidity and engagement, positively influencing the price of INJ.
Following the launch of the BUIDL Index, the price of the INJ token experienced a brief surge on September 4, testing its monthly closing price around $17.60 but facing resistance at that level.
Data from TradingView indicates that the INJ/USDT pair has been moving within a descending wedge pattern on the weekly chart.
At the time of writing, INJ was trading at $16.68, reflecting a 6.12% drop over the last seven days. Year-to-date, INJ has declined by 53%, trailing behind Bitcoin [BTC] and other major altcoins that have seen gains in the same period.