BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), launched in collaboration with the tokenization platform Securitize, is now accessible on the blockchain networks of Aptos, Arbitrum, Avalanche, OP Mainnet Optimism, and Polygon.
This expansion comes after the initial launch of the product on Ethereum and Ethereum Layer 2 networks. The new accessibility across these diverse blockchain platforms opens up additional opportunities for institutional investors to participate in tokenized markets, driving further adoption of blockchain technologies in the finance sector.
Tokenization of real-world assets has emerged as one of the most dynamic trends in the intersection of cryptocurrency and traditional finance.
By moving traditional financial instruments, such as government bonds, private credit, and other forms of debt, onto blockchain platforms, financial institutions aim to improve settlement speeds, reduce costs, and enhance operational efficiency. With tokenization, investors can trade fractionalized assets, making financial markets more accessible and liquid.
Carlos Domingo, CEO and co-founder of Securitize, emphasized the strategic importance of this expansion.
“We aim to develop a robust and thoughtfully designed ecosystem that embraces digital solutions and leverages the advantages of tokenization,”
Domingo explained. “With the integration of these new networks, we will see more investors adopting underlying blockchain technologies to improve efficiency in areas that were traditionally more complex to handle.”
BUIDL was first introduced by BlackRock in March 2024, offering a tokenized fund backed by short-term U.S. government bonds.
The token is pegged to $1, providing a stable investment product designed for institutional investors looking for low-risk, on-chain investment opportunities.
BUIDL has quickly gained traction, attracting over $520 million in deposits and positioning itself as the largest tokenized product in the U.S. Treasury market, which is valued at $2.3 billion according to rwa.xyz data.
The launch of BUIDL was a significant milestone in BlackRock’s broader strategy to expand its presence in the digital asset space.
The company has been actively exploring blockchain technology as a way to modernize the traditional finance industry and offer more efficient financial products.
BlackRock’s decision to expand BUIDL to multiple blockchain platforms demonstrates the firm’s commitment to staying ahead of the curve in this rapidly evolving market.
Institutional and DeFi Adoption
The BUIDL token has found a growing audience among institutional investors and decentralized finance (DeFi) protocols.
Many of these institutions use BUIDL as a way to place funds on-chain for generating yield or as collateral for trading.
DeFi platforms such as Ondo Finance are also building products on top of BUIDL, demonstrating the increasing synergy between traditional finance and decentralized finance.
BlackRock’s tokenization of real-world assets is helping bridge the gap between these two worlds. The ability to tokenize assets like government bonds and other low-risk securities on the blockchain has the potential to democratize access to institutional-grade investment opportunities.
By utilizing blockchain’s features—such as transparency, security, and faster settlement times—investors can benefit from a more efficient and accessible financial system.
Lower Fees on New Blockchains
In addition to broadening the accessibility of BUIDL across various blockchain platforms, BlackRock has also adjusted the fee structure.
The management fees for BUIDL are set at 50 basis points on Ethereum, Arbitrum, and Optimism, while these fees are reduced to just 20 basis points on Aptos, Avalanche, and Polygon.
This reduction in fees is a strategic move designed to attract more investors to these emerging networks, as transaction costs can be a significant barrier for large-scale institutional participation.
The respective ecosystem development organizations—Aptos Foundation, Avalanche (BVI), Inc., and Polygon Labs BD Investments (Cayman) Ltd.—have agreed to pay BlackRock quarterly fees in exchange for the integration of their networks.
This partnership aligns with the growing interest in blockchain networks that offer scalability, faster transaction speeds, and lower costs compared to Ethereum’s mainnet.
The Future of Tokenized Assets
The expansion of BlackRock’s tokenized asset fund to five new blockchain networks is just the beginning of a larger trend that is likely to reshape the financial industry in the coming years.
As more traditional financial institutions and digital asset platforms explore tokenization, the blockchain ecosystem will continue to evolve, offering new opportunities for investors and reshaping how assets are managed and traded globally.
BlackRock’s latest move underscores the growing synergy between traditional finance and blockchain technology, paving the way for further innovation in the financial services industry.
With the continued rise of tokenized assets, it seems likely that the future of finance will be increasingly intertwined with blockchain technologies, creating a more efficient and inclusive financial system.