Originally published on: November 13, 2024
Asset management giant BlackRock is taking its tokenized money fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), to the next level by launching it on several new blockchain networks. In addition to its initial launch on the Ethereum network, BUIDL will now be available on Aptos, Arbitrum, Avalanche, Optimism, and Polygon.
Managed by Securitize, BUIDL is a money market fund that primarily invests in short-dated United States Treasury bills and similar low-risk, interest-bearing securities. This expansion to new chains is expected to bring greater efficiency and accessibility to investors looking to leverage blockchain technology for financial products and infrastructure.
The demand for tokenized real-world assets (RWAs) like T-Bills is on the rise, with tokenized US treasury debt already commanding over $2.3 billion in total locked value. BUIDL stands out as the largest tokenized treasury fund in terms of assets under management (AUM), followed closely by other funds like Franklin OnChain US Government Money Fund.
By launching BUIDL across multiple chains, BlackRock aims to make the fund accessible within various blockchain financial ecosystems. This move aligns with the broader trend of tokenizing assets, including treasures and artworks, which presents a significant $30 trillion market opportunity globally.
The United States Department of the Treasury recognizes the potential benefits of tokenization, noting that it could improve liquidity in treasury trading by reducing operational and settlement frictions. Distributed ledger technology (DLT) and smart contracts are highlighted as key tools for increasing transparency and efficiency in financial markets.
In a similar move, Franklin Templeton recently announced the launch of its tokenized money fund on Coinbase’s layer-2 network Base, while Libeara and FundBridge Capital introduced a tokenized T-Bill fund on the Avalanche network.
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