BlackRock Expands BUIDL Tokenized Fund Across Multiple Blockchains, Becoming Largest Globally by AUM

BlackRock has just rolled out its USD Institutional Digital Liquidity Fund, known as BUIDL, across several blockchain ecosystems. This fund is tokenized by Securitize and is now available on Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon.

This move is a big deal in the tokenization world. It allows BUIDL to connect with a variety of blockchain-based financial products. Each new blockchain integration means BUIDL can work directly with the applications and users in those ecosystems. This opens up opportunities for on-chain yield generation, flexible custody options, and 24/7 peer-to-peer transfers. Plus, it allows for on-chain dividend accrual and distribution.

In less than 40 days, BUIDL has become the largest tokenized fund globally by assets under management. This expansion is great news for investors. It broadens access for decentralized autonomous organizations (DAOs), digital asset firms, and individual investors. Developers also get a chance to build on the BlackRock fund within their chosen blockchain environment.

Management fees for the different blockchains are set at 20 basis points for Aptos, Avalanche, and Polygon. For Arbitrum, Optimism, and Ethereum, the fee is 50 basis points.

BUIDL launched in March 2024. Its goal is to offer investors several advantages. For instance, it allows the issuance and trading of ownership directly on a blockchain. This makes access to on-chain products easier and ensures quick, transparent settlements. It also streamlines transfers across multiple platforms.

Recently, Securitize announced that qualified institutions can now convert their USDC into USD. They achieved this through a partnership with Zero Hash, a platform that facilitates exchanges between US dollars and digital assets. This development means institutions can now participate in BlackRock’s BUIDL.