BlackRock expands its crypto fund BUIDL to five blockchains, adding Aptos, Arbitrum, Avalanche, Optimism, and Polygon for wider accessibility.
BUIDL's multi-chain integration enables DAOs and digital firms to leverage on-chain yield, peer-to-peer transfers, and on-chain dividend features.
With BNY Mellon as custodian, BUIDL connects traditional finance with crypto, using tailored management fees and quarterly payments for sustainability.
BlackRock has taken another step into the cryptocurrency sector, expanding its BlackRock USD Institutional Digital Liquidity Fund (BUIDL) to five additional blockchains. Following its initial launch on Ethereum earlier this year, the firm now includes Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon in its offerings.
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Notably, this move underscores BlackRock’s commitment to widening access for investors and blockchain-based organizations, solidifying its presence in the tokenization market. Through this multi-blockchain integration, BlackRock aims to offer more decentralized financial tools while also providing varied access points for investors interested in crypto.
Increased Accessibility and Operational Efficiency
Consequently, this expansion will grant broader access to BUIDL’s offerings, with new features that include on-chain yield, round-the-clock peer-to-peer transfers, and dividend accrual. Aptos, Arbitrum, Avalanche, Optimism, and Polygon bring unique advantages to the fund, including faster transactions and lower fees. Each chain’s distinct attributes enhance BUIDL’s performance and align with the fund’s objectives.
More so, Aptos offers advanced safety and performance using the Move programming language, while Arbitrum’s Optimistic Rollup technology on Ethereum provides swift, cost-effective transactions. With this multi-chain expansion, BlackRock aligns the fund with specific blockchain benefits, which could improve user experience across decentralized financial systems.
Enhancing Flexibility for DAOs and Blockchain-Native Firms
By operating on multiple blockchains, BlackRock’s BUIDL fund appeals to decentralized autonomous organizations (DAOs) and digital asset firms requiring adaptable financial products. The fund’s features support operational flexibility, which is essential for DAOs and similar organizations.
Moreover, the multi-chain integration supports developers in creating new blockchain-based financial products that connect traditional finance with emerging digital ecosystems. This could encourage further adoption of tokenized funds among institutions and individuals who seek reliable, on-chain investment solutions.
Strategic Custody and Administrative Partnerships
Besides, BNY Mellon plays a vital role in BUIDL’s multi-chain integration, acting as the fund administrator and custodian. The involvement of a traditional financial giant provides a trusted link between conventional finance and digital assets, reinforcing BUIDL’s security and operational standards. Each blockchain also has its specific management fee structure, with Aptos and Avalanche at 20 basis points and Ethereum, Arbitrum, and Optimism at 50 basis points.
Additionally, organizations such as the Aptos Foundation and Polygon Labs make quarterly payments to BlackRock based on the share values. This setup supports the fund’s financial sustainability while also diversifying its income streams.
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