BlackRock, the world's largest asset-management company, is expanding its tokenized real-world asset fund by adding support for five new blockchains. This step aims to enhance access to its leading money-market fund token.
New Blockchain Platforms for BlackRock Fund
BlackRock announced the availability of its USD Institutional Digital Liquidity Fund (BUIDL) on the Aptos, Arbitrum, Avalanche, Optimism, and Polygon blockchains. Initially launched on Ethereum in March, this product is now available on additional platforms.
Features and Benefits of BUIDL
BUIDL, backed by short-term U.S. Treasuries, has become the largest blockchain-based money market fund, amassing $520 million in assets. The token is pegged to $1 and is used for parking on-chain cash, earning yields, or as collateral for trading. DeFi protocols, such as Ondo Finance, have also built products on top of BUIDL. According to rwa.xyz data, BUIDL leads the $2.3 billion tokenized U.S. Treasury market.
Trends in Real-World Asset Tokenization
The tokenization of real-world assets is becoming a significant trend at the intersection of cryptocurrency and traditional finance. Companies aim to move instruments like government bonds and private credits onto blockchain platforms to achieve faster settlements and greater operational efficiencies.
BlackRock's expansion to five new networks with lower fees marks a significant step in the development of the tokenized asset market, offering investors more opportunities and options for investment.
