Uniswap’s UNI token erupted higher Tuesday after news that BlackRock’s tokenized Treasury fund, BUIDL, will be tradable through UniswapX in partnership with Securitize. The move marks the first time the world’s largest asset manager is plugging one of its tokenized funds directly into DeFi trading infrastructure. BlackRock also disclosed it purchased an undisclosed amount of UNI as part of a strategic investment in the ecosystem.

Traders reacted instantly. In a fifteen minute surge, UNI ripped from $3.29 to $4.36, a near vertical move that briefly put the token up more than 30% intraday. But the excitement faded just as quickly. As of this morning, UNI has erased almost the entire move, changing hands near $3.37.

This story is an excerpt from the Unchained Daily newsletter.

BUIDL, which holds roughly $2.4 billion in assets, will remain limited to whitelisted institutional participants, with trading routed through a request for quote system and settled onchain. The episode underscores both growing institutional interest in DeFi rails and the market’s current fragility, where even major headlines struggle to sustain momentum.