Polygon

Avalanche

Optimism

<p>BlackRock has just made a significant leap in its foray into decentralized finance by expanding its tokenized money market fund, BUIDL, across five new blockchains: Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon. Initially launched on Ethereum in March 2024, <strong>BUIDL is already the largest tokenized fund in terms of assets under management globally, reaching this milestone in less than 40 days.</strong></p><p></p><h3 id="what-is-buidl">What is BUIDL?</h3><p>The BUIDL Fund, officially known as the BlackRock USD Institutional Digital Liquidity Fund, is a tokenized version of a traditional money market fund. In simpler terms, it allows investors to earn U.S. dollar yields through a blockchain-based vehicle, offering the same sort of reliable returns as a money market fund but in a decentralized environment. </p><p>Tokenized by Securitize, BUIDL lets users gain exposure to U.S. dollar-backed returns while interacting with decentralized finance (DeFi) platforms. This dual offering of traditional finance yields with blockchain interoperability is part of BlackRock’s broader goal of merging traditional financial offerings with blockchain innovation.</p><p></p><h3 id="new-blockchains-greater-access">New Blockchains, Greater Access</h3><h3 id=""></h3><p>Expanding BUIDL to multiple blockchain networks is more than just a symbolic move; it is an effort to extend the utility and reach of tokenized assets. Aptos, Arbitrum, Avalanche, Optimism, and Polygon are some of the most promising blockchain ecosystems, each contributing its unique advantages. Aptos, a high-performance Layer-1, offers flexible smart contract capabilities, while Arbitrum, a Layer-2 scaling solution, adds rapid transaction processing and deep liquidity. Avalanche and Polygon bring EVM compatibility, high scalability, and robust ecosystems. Optimism is focusing on scaling Ethereum, enabling developers to leverage Ethereum’s security while creating dApps at reduced costs.</p><p>Polygon recently demonstrated its impressive scalability and resilience during the Polymarket election prediction markets. This major event saw a surge in activity, and Polygon handled it seamlessly, solidifying its position as a robust and reliable blockchain for high-demand applications like prediction markets.</p><p>By integrating BUIDL into these ecosystems, BlackRock aims to offer flexible custody options, near real-time peer-to-peer transactions, and on-chain dividend accrual. BUIDL can now seamlessly interact with decentralized applications (dApps), offering new ways for investors to participate and earn in DeFi.</p><p></p><h3 id="securitize-s-role-in-tokenizing-real-world-assets">Securitize’s Role in Tokenizing Real-World Assets</h3><p>The role of Securitize in this journey cannot be overstated. Securitize has been at the forefront of tokenizing real-world assets and providing a bridge between traditional finance and blockchain. With backing from BlackRock, they have been able to integrate traditional financial instruments, such as the BUIDL fund, into blockchain ecosystems. This tokenization allows for 24/7/365 access to liquidity and a unique opportunity to achieve on-chain yield. According to Carlos Domingo, CEO and co-founder of Securitize, real-world asset tokenization is scaling up, and this latest move with BlackRock aims to maximize the potential of the BUIDL ecosystem.</p><h3 id="bny-s-contribution">BNY’s Contribution</h3><p>Another key player in this development is BNY Mellon, acting as the fund’s administrator and custodian. Known for its efforts to bridge the gap between traditional and digital financial ecosystems, BNY Mellon’s involvement offers an extra layer of security and reliability. This institutional-grade custody and compliance help build trust, making the fund more attractive to a wide range of investors, from individual retail users to large institutions.</p><h3 id="why-this-matters">Why This Matters</h3><p>So, why is this important? BlackRock’s entry into the tokenization market and its expansion across different blockchain ecosystems represent a paradigm shift in the financial industry. Real-world assets have always been a huge part of finance, and now, through blockchain, they are more accessible, transparent, and liquid.</p><p>For investors, this provides a new way to diversify their portfolios using blockchain technology, without the usual risks associated with more volatile crypto assets. For developers and DeFi enthusiasts, this provides the ability to use stable, high-quality assets like BUIDL within DeFi applications, enhancing both the reliability and usability of decentralized products.</p><p>This expansion also demonstrates how traditional finance (TradFi) can coexist with decentralized finance (DeFi). According to Robert Mitchnick, BlackRock’s head of digital assets, we are at a point where both worlds—the old and the new—are starting to converge. Tokenizing a traditional asset such as a money market fund represents a major step in blending the benefits of decentralized technology with the stability and regulatory clarity of traditional finance.</p><p></p>

BlackRock Expands BUIDL Tokenized Fund Across Multiple chains: A New Era for DeFi

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