BlackRock, the world’s largest asset management firm, is broadening the reach of its tokenised Treasury fund, BUIDL. This fund, the largest of its kind by market value, is now accessible on five additional blockchain networks.
The goal is to increase access for investors and developers interested in digital assets while making the fund more flexible for different types of users.
BUIDL, officially known as the BlackRock USD Institutional Digital Liquidity Fund, was initially launched in March 2023 on the Ethereum blockchain.
Now, the fund is expanding to include five more blockchain networks: Aptos, Arbitrum, Avalanche, Optimism, and Polygon.
This expansion was announced by Securitize, the company that issues the securities for BUIDL. Securitize has partnered with Ondo, a platform that will support BUIDL by providing instant withdrawals and quick settlements for investors.
Securitize’s CEO and co-founder, Carlos Domingo, explained the reason behind the expansion, saying, “We wanted to develop an ecosystem that was thoughtfully designed to be digital and take advantage of the advantages of tokenisation”.
This move allows a more diverse range of investors and organisations, including digital asset-native firms and decentralised autonomous organisations (DAOs), to use the BUIDL fund through their preferred blockchain networks.
Since its launch, BUIDL has gained significant traction in the tokenized Treasury space, reaching a market capitalisation of $544 million. This makes BUIDL the largest fund of its type, even outpacing its closest competitor, USDY, which has a market cap of $451 million.
With the addition of these five new blockchains, BlackRock aims to make BUIDL available to even more users and increase engagement in the tokenised asset market.
Increasing access for tokenised asset users
By expanding BUIDL to additional blockchains, BlackRock hopes to provide more flexibility and convenience for developers, investors, and organisations wanting to use tokenised government securities.
A major benefit of this expansion is that developers can now integrate BUIDL into applications and projects on any of the supported blockchains, making it easier to incorporate digital assets in a variety of digital ecosystems.
BUIDL offers features designed to improve the functionality and liquidity of tokenised assets. These features include real-time dividend accrual, peer-to-peer transfers, and on-chain yield, which means investors can see returns directly on the blockchain in real time.
The expansion also supports instant withdrawals and settlements, enabling faster and more efficient transactions.
Domingo emphasised the growth potential of tokenised assets, stating, “Real-world asset tokenisation is scaling, and we’re excited to have these blockchains added to increase the potential of the BUIDL ecosystem. With these new chains, we’ll start to see more investors looking to leverage the underlying technology to increase efficiencies on all the things that until now have been hard to do”.
This integration aligns with a broader trend in finance, where real-world assets like Treasury funds are increasingly being transferred to blockchain platforms.
For BlackRock, expanding BUIDL’s reach allows the firm to offer a secure and user-friendly option for investors looking to benefit from both traditional assets and blockchain technology.
Growing influence in digital assets
BUIDL’s rapid growth is notable in the expanding market for tokenised government securities. The fund reached $517 million in assets within 40 days of its launch in March, capturing 22% of the $2.3 billion market for tokenised government assets.
This growth places BUIDL ahead of other players, like Franklin Templeton’s OnChain US Government Money Fund, which has also gained recognition in this sector by using a public blockchain for transactions since its launch in 2021.
Beyond BUIDL, BlackRock has also expanded into other areas of digital finance, including cryptocurrency-based products.
In particular, the company launched the iShares Bitcoin Trust (IBIT), which became the largest spot Bitcoin ETF following US SEC approval in January.
Since then, IBIT has attracted significant investment interest, accumulating $40 billion in assets amid a recent Bitcoin price surge. Many observers see this as a sign of growing institutional acceptance of digital assets.
“This is big. Some of these were under heavy SEC scrutiny – now the BlackRock stamp of approval has been extended. Another sign that the SEC reign of terror is ending”, commented one user on the social media platform X.
By expanding into tokenised funds like BUIDL and launching cryptocurrency ETFs, BlackRock is opening up digital assets to a wider range of investors.
Tokenised funds allow investors to benefit from traditional government-backed assets while taking advantage of the transparency, accessibility, and efficiency offered by blockchain technology.
On the other hand, ETFs like IBIT offer a familiar investment structure for those entering the digital asset space for the first time.
This dual approach signals BlackRock’s commitment to merging traditional finance with digital innovation.
