YEREVAN (CoinChapter.com) — BlackRock, the world’s largest asset manager, has expanded its tokenized fund, known as the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). The fund now operates on five additional blockchain networks: Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon. Initially launched on Ethereum in March, the BUIDL fund has grown quickly. It now manages $520 million in assets, making it the largest tokenized U.S. Treasury-based product in a $2.3 billion market, as per rwa.xyz data.
The BUIDL fund is backed by short-term U.S. Treasuries. Each token holds a stable value anchored to $1. BlackRock collaborates with the tokenization platform Securitize to support institutions and DeFi protocols. Through BUIDL, these entities can manage cash on-chain, earn yields, and use assets as collateral for trades.
CEO of Securitize Comments on Blockchain Benefits
Carlos Domingo, CEO of Securitize, highlighted the advantages of tokenizing real-world assets through blockchain.
“We wanted to develop an ecosystem that was thoughtfully designed to be digital and take advantage of the advantages of tokenization,”
Domingo said. He noted that the addition of five new blockchain networks could also drive more institutional interest, providing efficient solutions for asset transactions and management.
Tokenizing real-world assets (RWAs) on blockchain networks is gaining traction as global financial institutions seek faster transaction settlements and operational efficiencies.
Management Fee Variances by Blockchain Network
The BUIDL fund offers different management fees based on the blockchain used. On Ethereum, Aptos, and Arbitrum, the fee stands at 50 basis points, while on Avalanche, Polygon, and Optimism, the fee is reduced to 20 basis points. This tiered pricing structure also provides cost options, potentially encouraging users to explore lower-fee blockchains for their investments.
Subsequently, to support this blockchain expansion, ecosystem development organizations like Aptos Foundation, Avalanche (BVI), Inc., and Polygon Labs BD Investments (Cayman) Ltd. have agreed to pay BlackRock a quarterly fee.
Strong Demand Continues to Boost BUIDL Fund
Notably, since launching, the BUIDL fund has accumulated over $520 million in assets. As the largest fund of its type, BUIDL is now a prominent choice for institutions and DeFi protocols like Ondo Finance, which use it for various financial functions, including collateralization and yield generation. Above all, the fund’s stable $1 peg, backed by U.S. Treasuries, provides a foundation for investors seeking reliable on-chain assets.
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