BlackRock, the world’s largest asset-management company, has announced that it is expanding its tokenized real-world asset fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), to five additional blockchains. Originally launched on Ethereum in March, BUIDL is now accessible on the Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon networks.
This move by BlackRock reflects the growing trend of tokenizing real-world assets within the intersection of crypto and traditional finance. By leveraging blockchain technology, digital asset firms and financial institutions are aiming to streamline settlement processes and improve operational efficiencies for assets such as government bonds, private credit, and funds.
Securitize, the platform in partnership with BlackRock for the tokenization of BUIDL, highlighted the benefits of utilizing multiple blockchains for increased efficiency and accessibility. Carlos Domingo, CEO and co-founder of Securitize, emphasized the advantages of tokenization in creating a digital ecosystem that enhances investor opportunities.
Since its launch, BUIDL has garnered significant interest and deposits, totaling over $520 million in assets. The token, backed by short-term U.S. government bonds, has become a popular choice for institutions and protocol treasuries looking to earn yields on their on-chain cash or utilize it as collateral for trading. Additionally, decentralized finance protocols like Ondo Finance have integrated BUIDL into their products.
In terms of fees, BUIDL’s management fee varies across different blockchains. While Ethereum, Arbitrum, and Optimism charge a fee of 50 basis points, Aptos, Avalanche, and Polygon offer a lower fee of 20 basis points. Furthermore, ecosystem development organizations associated with each blockchain have agreed to pay BlackRock a quarterly fee to support the expansion of BUIDL.
BlackRock’s initiative to bring its tokenized fund to multiple blockchains signifies a strategic move towards broader accessibility and adoption within the digital asset space. With the increasing demand for efficient and secure tokenized assets, the expansion of BUIDL to new networks is expected to attract more investors seeking to leverage blockchain technology for enhanced financial opportunities.
