BlackRock enters Ethereum

The day has come, @BlackRock has deployed their “BlackRock USD Institutional Digital Liquidity Fund” on Ethereum. This is the starting point for tokenization of the traditional finance sectors, which we all have waited for.

But what about the technical background of their deployment?

The contract was deployed by Securitize , which serves as a bridge between the traditional financial world and the blockchain, providing the tools and platform necessary for issuing and managing digital securities.

The contract deployed for the BlackRock fund is a simple proxy contract, allowing for upgrades of the implementation address at any time. This design allows two critical functions:

Owner Reassignment: The ability to transfer ownership is a standard feature, ensuring administrative control can be passed if needed.

Target Modification: More notably, the contract allows changing the "target" or the implementation address. This feature is crucial as it permits the introduction of new functionalities and can easily result in security problems.

However, the current implementation linked to this contract remains unverified on Etherscan. Verification would provide transparency and confidence:

Currently, the fund's contract is controlled by an Externally Owned Account rather than a multisignature wallet, this is less than ideal and places a considerable amount of trust in a single point of control, which, if compromised, could lead to significant security breaches.