Asset management firm BlackRock will launch its tokenized currency funds on five additional blockchain networks, according to a Nov. 13 announcement.
BlackRock BUIDL accelerates expansion
BlackRock’s BlackRock USD Institutional Digital Liquidity Fund (BUIDL) was initially only issued on the Ethereum network, but the latest announcement stated that the product will be expanded to Aptos, Arbitrum, Avalanche, Optimism and Polygon networks. BlackRock said that deployment across multiple chains will allow BUIDL to be used in blockchain-based financial products and infrastructure across various ecosystems.
“Each new blockchain enables an ecosystem of applications and users to natively interact with BUIDL to realize on-chain yields, with flexible custody, near real-time 24/7 point-to-point transfers, and on-chain dividend accumulation and distribution capabilities. .
BUIDL is a money market fund that invests primarily in short-term U.S. Treasury Bills (T-Bills) and similar low-risk, interest-bearing securities, and is tokenized by Securitize, an asset tokenization service provider. Securitize CEO Carlos Domingo said in a statement:
“Through these new chains, we will start to see more investors using this basic technology to improve efficiency and solve problems that were previously difficult to deal with.”
The total value of tokenized U.S. debt was approximately $2.3 billion as of November 13, according to RWA.xyz. Among them, BUIDL is the tokenized treasury bond fund with the largest asset management scale, followed by Franklin OnChain US Government Money Fund (FOBXX), with asset management scales of approximately US$510 million and US$450 million respectively.
Stable growth of asset tokenization
Asset tokenization is a future potential track that many investors are optimistic about. According to the U.S. Treasury Department’s Q4 2024 report, tokenization has the potential to improve the liquidity of Treasury securities by reducing friction in operation and settlement. The report points out that distributed ledger technology (DLT) and smart contracts have special advantages that are difficult to replace.
“An immutable ledger can increase the transparency of Treasury market operations, reduce opacity, and provide regulators, issuers and investors with more real-time insights into trading activity.”
In addition to BlackRock, Franklin Templeton is also launching its tokenized currency fund on Base (a second-tier network powered by Coinbase), while Libeara and FundBridge Capital will also launch tokens on the Avalanche network ized U.S. Treasury Bill (T-Bill) Fund.
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