The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) fund, the largest onchain Treasuries investment vehicle, has added oracle provider Chronicle as a novel verification solution, according to an announcement on Tuesday. 

Specifically, the Chronicle Proof of Asset system will provide “independently verified holdings-level data” that “continuously attests to the availability, freshness, and integrity of fund asset composition,” viewable on the Chronicle dashboard, according to the announcement. 

“Tokenization becomes meaningful when investors and protocols can independently verify what’s actually backing the product,” said Carlos Domingo, CEO and co-founder of BUIDL issuer Securitize. “Chronicle Proof of Asset supporting BUIDL shows how tokenized funds are evolving into fully transparent, data-driven financial instruments built for institutional use and global markets.”

Verification layer for tokenized funds

Chronicle Proof of Asset is an institutional-grade oracle layer from Chronicle Protocol that sources data directly from custodians and administrators. The idea is that by boosting data visibility and verifiability, tokenized funds can more easily integrate into the wider DeFi and TradFi ecosystems. 

The move comes as firms continue to reevaluate how to bring valuable off-chain data to blockchain apps and protocols. Coinbase, for instance, announced Wednesday it would start pushing its order book and equities and futures trading data directly onchain via ChainLink's new DataLink tool, joining firms like S&P Global and FTSE Russell. 

Niklas Kunkel, founder of Chronicle, said Proof of Asset is an “integrity layer” that provides “more granular and transparent data” for institutions that need extra assurances, like asset managers, allocators, platforms, and risk teams looking to use a tokenized product. This includes insight into the fund's underlying assets and independent attestations on the “valuation, composition, custody, and existence of the assets backing BUIDL.”

Robert Mitchnik, head of digital assets at BlackRock, told The Block via email that the system provides “platforms and allocators greater visibility in how tokenized assets are evaluated and used."

“That depth of verification is what institutions require and what the market has been missing. We're proud that BlackRock chose Chronicle to provide this layer, and we believe it sets a new standard for what transparency should look like in tokenized finance,” Kunkel said. 

The Proof of Asset manages about $5 billion in “total value secured,” including for major funds like the Janus Henderson Anemoy Treasury Fund (JTRSY) and Superstate’s Short Duration US Government Securities Fund (USTB). Securitize, which manages the BUIDL onchain fund, has also tapped Chronicle Proof of Asset for its Securitize's Tokenized AAA CLO Fund (STAC). 

BUIDL is the largest tokenized fund with about $1.7 billion worth of Treasuries, overnight repos, and cash under management. 

Last year, Securitize named RedStone as its primary data provider for funds issued by the likes of Apollo, BlackRock, Hamilton Lane, and KKR. 

"Proof of Asset goes beyond simply relaying price or NAV data onchain, which fundamentally differentiates it from other providers like Redstone,” Kunkel said. “This is entirely new infrastructure; we're building a layer that didn't exist until now."