BlackRock BUIDL Fund: Tokenized Treasuries Across Multiple Blockchains

In April 2024, BlackRock quietly launched its BUIDL Fund, a tokenized U.S. Treasury fund designed to operate across multiple blockchain platforms. The fund reflects the growing demand for real-world asset tokenization (RWA), particularly from institutional players seeking secure, compliant exposure to yield-bearing assets. With multiple chain support and a focus on composability, BUIDL aims to serve both DeFi platforms and traditional finance players in a hybrid digital economy.

BlackRock’s BUIDL surpassing $1 B in AUM represents a significant moment for on‑chain finance. Carlos Domingo, Co‑founder and CEO of Securitize.

The financial landscape is undergoing a seismic shift as institutions embrace blockchain technology. Leading the charge is BlackRock, the world’s largest asset manager, with its BUIDL Fund (USD Institutional Digital Liquidity Fund).

Initially launched on Ethereum in March 2024, BUIDL has expanded to five additional blockchains. This move enhances on-chain liquidity, accessibility, and investor engagement, solidifying tokenized treasuries as a pivotal part of the decentralized finance (DeFi) ecosystem.

In this article, we explore the latest advancements in BUIDL, how BlackRock is revolutionizing tokenized money market funds, and what this means for institutional and retail investors.

BlackRock BUIDL Fund: A Quick Overview

BlackRock’s BUIDL Fund is a tokenized version of a U.S. Treasury-backed money market fund, providing:

1. Fractionalized ownership of U.S. Treasury assets
2. On-chain yield generation with seamless transactions
3. Near-instant peer-to-peer transfers across blockchain networks
4. Daily dividends and intra-day redemptions for enhanced liquidity

The fund aims to maintain a stable $1 per token value, offering an efficient and secure alternative to traditional treasury investments.

BlackRock BUIDL Fund to Multiple Blockchains

The team at BlackRock has taken a major step forward by extending BUIDL beyond Ethereum. The fund now operates on six blockchain networks:

1️⃣ Ethereum – The original launch platform
2️⃣ Aptos – A high-performance Layer 1 blockchain
3️⃣ Arbitrum – A leading Layer 2 scaling solution for Ethereum
4️⃣ Avalanche – Known for high-speed, low-cost transactions
5️⃣ Optimism OP Mainnet – Another Ethereum Layer 2 solution
6️⃣ Polygon – A widely adopted multi-chain ecosystem

Why This Matters

• Greater Accessibility: Institutional and retail investors can access BUIDL from different blockchain ecosystems, reducing entry barriers.
• Interoperability: The expansion allows frictionless movement of assets across chains, unlocking new financial strategies.
• Institutional-Grade Liquidity: With more on-chain integrations, BUIDL can seamlessly interact with DeFi protocols, enhancing its use in lending, collateralization, and trading.

This move positions BlackRock as a frontrunner in the institutional adoption of tokenized assets, setting the stage for a new era in decentralized finance【prnewswire.com】.

Revolutionary Features: Daily Dividends & Intra-Day Redemptions

BUIDL’s new dividend and redemption system enhances investor flexibility, making it one of the most liquid tokenized treasury funds available.

1. Daily Dividends – A Game Changer

• Previously, dividends were distributed monthly.
• Now, investors receive daily payouts directly to their wallets from Monday to Friday.
• This ensures consistent yield accrual, making BUIDL a stable and predictable investment option.

2. Intra-Day Redemptions – Unmatched Liquidity

• Investors can redeem funds multiple times per day, rather than waiting for end-of-day settlements.
• This aligns tokenized money markets closer to traditional finance while retaining blockchain’s efficiency.

By implementing daily dividends and real-time liquidity, BlackRock has bridged the gap between traditional finance (TradFi) and DeFi, making treasury investments more dynamic than ever【marketsmedia.com】.

BUIDL’s Explosive Growth & Institutional Adoption

Since its launch, BUIDL has witnessed remarkable adoption, making it the largest tokenized money market fund on a public blockchain.

BlackRock BUIDL Fund Key Growth Metrics (as of November 2024):

1. $517 million in assets under management (AUM)
2. Strong institutional backing from DeFi and TradFi investors
3. Increased on-chain activity from DAOs, fintech firms, and treasuries

Therefore, as institutions look for secure, yield-generating digital assets, BUIDL’s compliance, stability, and accessibility make it a top-tier investment choice【coindesk.com】.

The Bigger Picture: BlackRock’s Buidl Vision for Tokenized Finance

BlackRock BUIDL Fund isn’t just about tokenized treasuries—it represents a major step toward a fully digital asset ecosystem.

1. The Rise of Tokenized Assets

• JP Morgan, Citi, and Goldman Sachs are actively exploring tokenized bonds, real estate, and commodities.
• The total tokenized asset market is expected to reach $4–5 trillion by 2030【citi.com】.

2. Institutional Acceptance of DeFi

• BlackRock’s move legitimizes blockchain-based financial instruments, pushing traditional investors into the DeFi space.
• More hedge funds and asset managers are now looking at tokenized securities as a mainstream investment class.

3. The Future of On-Chain Finance

• Stablecoins and tokenized treasuries could become the backbone of global financial settlements.
• Central Bank Digital Currencies (CBDCs) may integrate with tokenized asset platforms, creating a seamless digital financial system.

BlackRock’s BUIDL Fund is more than just a financial product—it’s a blueprint for the future of digital finance【prnewswire.com】.

Challenges & Considerations

While BUIDL’s expansion is groundbreaking, there are still challenges to overcome:

1. Regulatory Hurdles:

• Different jurisdictions have varying rules on tokenized securities, making global adoption complex.
• Governments may impose new taxation and compliance laws on tokenized treasuries.

2. DeFi Risks & Smart Contract Security:

• BlackRock must ensure its smart contract infrastructure is resilient against exploits.
• Institutional DeFi adoption still requires rigorous security audits to build trust.

3. Adoption by Traditional Investors:

• Many traditional investors are still hesitant to enter blockchain-based finance.
• Education and regulatory clarity will be key to fostering wider acceptance.

Despite these challenges, BlackRock’s pioneering efforts in tokenized treasuries position BUIDL as a cornerstone of the future financial ecosystem.

Conclusion: A New Era for Tokenized Investments

The BlackRock BUIDL Fund expansion is a defining moment for the tokenized finance industry. By integrating with multiple blockchains, offering daily dividends, and enabling intra-day redemptions, BlackRock is leading the institutional shift toward digital assets.

As traditional finance embraces tokenization, BUIDL stands at the forefront, offering secure, transparent, and liquid exposure to U.S. Treasuries. Finally, with continued growth, we may soon see widespread adoption of tokenized financial products, transforming global investment markets.

🚀 The future of finance is here—and it’s tokenized. Are you ready to BUIDL? 🚀

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