Ondo

Polygon

Avalanche

Rise

BlackRock

BlackRock, the world’s largest asset manager,&nbsp;<a style="text-decoration:none" href="https://www.prnewswire.com/news-releases/blackrock-launches-new-buidl-share-classes-across-multiple-blockchains-to-expand-access-and-potential-of-buidl-ecosystem-302304035.html">announced</a> expansion of its flagship tokenized real-world asset fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). Tokenized by Securitize and initially launched on Ethereum earlier this year, BUIDL is now accessible on five additional blockchains: Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon.&nbsp;
Each of these new chains offers its own set of advantages, such as faster transaction speeds and reduced fees, providing investors with more options and greater efficiency in their transactions.
&nbsp;
BNY, playing a key role in bridging traditional and digital financial ecosystems, facilitated the fund's launch on these additional blockchains as the administrator and custodian for BUIDL.
<h2 dir="ltr" id="span-span-what-is-buidl-span-span">What Is BUIDL?</h2>
BUIDL is a tokenized fund primarily backed by short-term U.S. government bonds, such as Treasury bills (T-Bills). Its price is pegged at $1, providing investors with a stable, low-risk asset with consistent yield.&nbsp;
&nbsp;
The fund pays daily dividends to investors’ wallets in the form of new tokens each month. Since its March launch, BUIDL has amassed significant deposits, surpassing&nbsp;<a style="text-decoration:none" href="https://app.rwa.xyz/">$520 million</a> in assets under management (AUM), making it the leading tokenized U.S. Treasury market product.
<h2 dir="ltr" id="span-span-expanding-access-across-multiple-blockchains-span-span">Expanding Access Across Multiple Blockchains</h2>
BlackRock’s expansion of BUIDL to five new blockchains enhances the utility and accessibility of the fund.&nbsp;
&nbsp;
The expansion also allows for the use of BUIDL within DeFi platforms and protocol treasuries, creating a stable and reliable yield option in a market that has historically been volatile. For example, Ondo Finance, a DeFi platform, has already built products that leverage the BUIDL token, showcasing the growing potential of tokenized funds in decentralized finance.
&nbsp;
The fund can also be used as collateral for DeFi trading, boosting its appeal.&nbsp;
&nbsp;
Carlos Domingo, CEO of Securitize, expressed excitement over the expansion, stating:
<blockquote>
 “Real-world asset tokenization is scaling, and we’re excited to have these blockchains added to increase the potential of the BUIDL ecosystem.”
</blockquote>
BUIDL charges a management fee of 50 basis points on Ethereum, Arbitrum, and Optimism, while the fee is lower—just 20 basis points—on Aptos, Avalanche, and Polygon. Ecosystem development organizations, including Aptos Foundation, Avalanche (BVI) Inc., and Polygon Labs BD Investments (Cayman) Ltd., will pay BlackRock a quarterly fee.
<h2 dir="ltr" id="span-span-the-rise-of-institutional-adoption-in-tokenization-span-span">The Rise of Institutional Adoption in Tokenization</h2>
BlackRock’s move follows other significant steps by major financial institutions to integrate blockchain technology.&nbsp;
&nbsp;
Recently, JPMorgan Chase and Visa joined efforts to explore the feasibility of tokenizing cash and other assets. State Street, with $4.1 trillion in assets, also&nbsp;recently <a style="text-decoration:none" href="https://www.businesswire.com/news/home/20240820283010/en/State-Street-Announces-Agreement-with-Taurus-to-Deliver-Full-Service-Digital-Platform-for-Institutional-Investors">partnered</a> with crypto tokenization platform Taurus to push forward this trend.

BlackRock’s Tokenized Fund BUIDL Now Available on Aptos, Arbitrum, and More Blockchains

Table of Contents

BSCN

Other articles published on Nov 20, 2024

SOL Global Investments Corp Expands Its Portfolio with Solana Token Acquisition

Grayscale to Introduce Bitcoin ETF Options Amid Growing Investor Demand

Bitcoin’s New $94K High: Why Isn’t Anyone Celebrating?

KuCoin Lists Blast Royale (NOOB) with 1.8M Token Giveaway

Cardano attained an 18-month high today, following the whale’s transactions

Bitcoin Hits All-Time High of $75,000 Amid U.S. Election Buzz

Join our free newsletter for daily crypto updates!