Originally published on: November 13, 2024
BlackRock, a prominent asset manager, is taking its tokenized money fund, BUIDL, to the next level by expanding it to several additional blockchain networks. This move was announced on Nov. 13 and marks a significant step in the world of digital assets.
Initially launched on the Ethereum network, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is now set to branch out to Aptos, Arbitrum, Avalanche, Optimism, and Polygon, according to BlackRock. Tokenized by Securitize, BUIDL is a money market fund that primarily invests in short-dated United States Treasury bills (T-Bills) and other low-risk, interest-bearing securities.
Carlos Domingo, CEO of Securitize, emphasized the potential for investors to leverage this technology to enhance efficiencies across various financial processes. The demand for tokenized real-world assets (RWAs), offering low-risk yield opportunities, is on the rise. Tokenized US treasury debt alone boasts a total value locked of approximately $2.3 billion as of Nov. 13.
With BUIDL being the largest tokenized treasury fund based on assets under management (AUM), followed closely by Franklin OnChain US Government Money Fund (FOBXX), this expansion to multiple chains opens up exciting possibilities for blockchain-based financial products and infrastructure.
Tokenization has the power to improve liquidity in trading T-Bills by streamlining operational and settlement processes, as highlighted by the United States Department of the Treasury. Franklin Templeton has also joined the trend by launching its tokenized money fund on Coinbase’s layer-2 network, Base.
The tokenized United States Treasury bill (T-Bill)fund on the Avalanche network, introduced by Libeara and FundBridge Capital, further underscores the growing influence of blockchain technology in the financial sector. As this trend continues, the possibilities for investment and trading in digital assets are expanding rapidly.
Don’t miss out on the latest developments in DeFi and blockchain technology. Subscribe to our Finance Redefined newsletter for weekly updates on opportunities in the evolving world of finance. Stay informed and make confident decisions with our insightful analysis and news. Subscribe now to stay ahead of the curve!
