BlackRock's BUIDL Fund Expands to Five New Blockchains

BUIDL Fund Expands Beyond Ethereum

BlackRock is stepping up its tokenization game, bringing its USD Institutional Digital Liquidity Fund (BUIDL) to five new blockchains: Aptos, Arbitrum, Avalanche, Optimism's OP Mainnet, and Polygon. 

The asset management titan aims to scale its reach in the $2.3 billion tokenized U.S. Treasury market, where BUIDL already leads with over $520 million in deposits, according to rwa.xyz data. This marks a significant leap from its Ethereum-only beginnings, as BlackRock embraces a multi-chain strategy to cater to the growing demand for tokenized real-world assets.

Tokenization is reshaping the financial landscape, bridging traditional assets like government bonds and private credit with blockchain efficiency. Securitize, the platform powering BUIDL, is bullish on the benefits. "With these new chains, we'll see more investors leveraging tokenization for operational efficiencies," said Securitize CEO Carlos Domingo. 

Launched in March, BUIDL is pegged to $1 and backed by short-term U.S. government bonds, making it a go-to for institutions and decentralized finance protocols. Players like Ondo Finance have built products atop BUIDL, leveraging its stability and yield potential. 

The fund’s cost structure is tailored to its host networks, with management fees set at 50 basis points on Ethereum, Arbitrum, and Optimism, but slashed to 20 basis points on Aptos, Avalanche, and Polygon. This discount is bolstered by ecosystem development agreements, with entities like Aptos Foundation and Polygon Labs covering BlackRock’s quarterly fees.

BlackRock’s multi-chain expansion reflects the intensifying competition in tokenized finance. As the sector evolves, BUIDL’s footprint across these diverse ecosystems positions it as a cornerstone in the next wave of blockchain-driven liquidity solutions.

This article has been refined and enhanced by ChatGPT.