Uniswap’s native token UNI posted a strong gain on Wednesday after the world’s largest asset manager BlackRock announced plans to bring its Treasury-backed digital fund BUIDL to the decentralized finance (DeFi) platform.
The move, which also includes BlackRock’s intention to purchase UNI tokens, fueled a strong rally for the token during the trading session.
BUIDL launched on Uniswap
The development was detailed in a joint press release from Uniswap Labs and Securitize. The two companies revealed a strategic integration that will allow shares of the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) to be traded using UniswapX technology.
Through the integration of UniswapX with the Securitize infrastructure, investors will be able to access market quotes and trade BUIDL directly with whitelisted participants 24 hours a day, every day of the year.
The companies described the move as an important step in uniting traditional financial products with decentralized trading systems.
Robert Mitchnick, global head of digital assets at BlackRock, characterized the collaboration as a significant advance in the convergence of tokenized assets and decentralized finance.
He said the integration of BUIDL into Uniswap represents significant progress in enabling interoperability between US dollar tokenized performance funds and stablecoins.
UNI overcomes slow crypto market
Following the announcement, Uniswap rose to a weekly high of $4.50 on Wednesday. However, bullish momentum waned later in the session, with the token retracing to around $3.68 at the time of writing.
Even with the pullback, UNI stood out as one of the few cryptocurrencies to post gains on the day, as Bitcoin (BTC) and the broader digital asset market continued to face bearish pressure.
From a technical perspective, Uniswap investors will need to keep an eye on the $3.14 level, which has served as support since Friday of last week. On the upside, the $4.70 level may act as short-term resistance if renewed buying interest pushes prices higher in the coming days.
Featured image by OpenArt, chart by TradingView.com
