BlackRock’s BUIDL ...

BlackRock’s BUIDL Fund to Expand to New Blockchains Like Aptos, Avalanche and More

By José Oramas November 14, 2024 In Aptos, Arbitrum, Avalanche, Blackrock, Blockchain, bny mellon, Optimism, Polygon

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has expanded to multiple blockchains, including Aptos, Arbitrum, Avalanche, Optimism, and Polygon, to boost accessibility and support its multi-chain tokenisation strategy.
BUIDL’s multi-chain approach enables broader access for investors, DAOs, and digital asset firms, offering features like on-chain yield, dividend accrual, and near-instant peer-to-peer transfers.
BNY Mellon backs this expansion by serving as the fund’s custodian and administrator across all platforms, ensuring consistent oversight and management.

BlackRock has broadened the reach of its USD Institutional Digital Liquidity Fund (BUIDL) by extending it to multiple prominent blockchain networks, including Aptos, Arbitrum, Avalanche, Optimism, and Polygon, according to an announcement on November 13.

This expansion aims to boost accessibility and strengthen BlackRock’s tokenisation efforts by establishing BUIDL as a multi-chain asset, the press release reads.

BlackRock to Rule Them All

BUIDL’s presence on multiple blockchains enables each network’s applications to directly interact with the fund, opening opportunities for investors, decentralised autonomous organisations (DAOs), and digital asset-focused firms.

BUIDL provides features such as on-chain yield, dividend accrual, and swift peer-to-peer transfers, delivering a robust tool for digital liquidity, all thanks to its multi-chain approach.

BNY Mellon also supports the expansion, acting as the fund’s custodian and administrator and ensuring continuity across the newly added networks.

Since its launch on Ethereum, BUIDL has seen impressive growth, becoming the largest tokenised fund by assets under management within its first 40 days. Data from RWA.xyz shows BUIDL’s market capitalisation at US$558M (AU$859M), reflecting strong market interest in tokenised funds.

Securitize’s CEO, Carlos Domingo, highlighted the strategic value of expanding BUIDL across these blockchains, emphasising how this development supports the larger vision of a tokenised asset 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.

Carlos Domingo, Securitizes CEO

If you’re asking why they did it… well, it’s because everyone else is doing it. For instance, Franklin Templeton’s OnChain US Government Money Fund (FOBXX) already leverages public blockchain technology to handle transactions and record share ownership. Launched in 2021, FOBXX, operated by the BENJI token, operates on Aptos, Arbitrum, Avalanche, Stellar, and Polygon