Blackrock’s BUIDL goes multichain

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As a seasoned researcher with a keen interest in blockchain technology and digital assets, I find the recent expansion of Blackrock’s tokenized money fund to multiple blockchain networks quite intriguing. Having closely followed the development of this space over the years, it’s exciting to see traditional financial giants like Blackrock embracing the potential of blockchain for increased efficiency.

According to a statement made on November 13th, asset management firm BlackRock plans to expand the availability of its tokenized money fund across approximately six more blockchain platforms.

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is planning to grow its presence on networks like Aptos, Arbitrum, Avalanche (AVAX), Optimism, and Polygon, as per their announcement. Originally, it was introduced on the Ethereum (ETH) network.

Through the service of Securitize, BUIDL functions as a money market fund, predominantly investing in short-term U.S. Treasury bonds (T-Bills) and other low-risk, income-generating assets with similar characteristics.

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Through these newly introduced chains, we can anticipate an influx of investors eager to utilize the embedded technology to enhance efficiency in tasks that were previously challenging, asserts Carlos Domingo, CEO of Securitize, in his declaration.

Related: Libeara, FundBridge launch US treasury fund on Avalanche

Demand is surging for tokenized real-world assets (RWAs) offering low-risk yield from T-Bills and other money market instruments.

Tokenized US treasury debt commands approximately $2.3 billion in total value locked as of Nov. 13, according to RWA.xyz.

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BUIDL is the largest tokenized treasury fund in terms of assets under management (AUM), followed by Franklin OnChain US Government Money Fund (FOBXX), with AUM of approximately $510 million and $450 million, respectively.

Launching across multiple chains enables “BUIDL to be used within leading blockchain-based financial products and infrastructure across ecosystems,” Blackrock said.

Each newly implemented blockchain allows for a native connection between the ecosystem of applications and users, enabling them to generate returns (on-chain yield) with flexible asset custody, instant 24/7/365 peer-to-peer transactions, and automated distribution of dividends directly on the blockchain.

As a crypto investor, I’ve recently learned about the vast potential of Tokenized Realized and Warranty Assets (RWAs), which span from T-Bills to artworks, amounting to a whopping $30-trillion market opportunity worldwide. This intriguing insight was shared by Colin Butler, Polygon‘s global head of institutional capital, during his interview with CryptoMoon in August.

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According to the U.S. Department of the Treasury’s Q4 2024 report, tokenization could enhance the ease of trading Treasuries by minimizing operational and transactional snags that can impact liquidity.

The committee noted that distributed ledger technology (DLT) and smart contracts could bring about significant advantages.

According to the report, “Permanent record-keeping systems (immutable ledgers) might enhance the clarity of transactions in the Treasury market, decreasing obscurity, and offering regulators, issuers, and investors a clearer, real-time view of trading actions.

On October 31, Franklin Templeton announced their plans to debut a tokenized money market fund through Coinbase’s second-layer network, known as Base.

As a forward-thinking crypto investor, I’m excited about the upcoming collaboration between Libra and FundBridge Capital. They are set to introduce a tokenized U.S. Treasury bill (T-Bill) fund on the Avalanche network. This innovative move promises to bring the stability of traditional investments into the world of decentralized finance, making it easier for crypto enthusiasts like myself to diversify our portfolios.

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2024-11-13 22:19