Asset manager BlackRock will be launching its tokenized money fund on nearly half a dozen additional blockchain networks, reports Cointelegraph.
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) will expand to Aptos, Arbitrum, Avalanche, Optimism and Polygon, BlackRock said. It was initially launched on the Ethereum network.
Tokenized by Securitize, BUIDL is a money market fund and invests primarily in short-dated United States Treasury bills (T-Bills) and similar low-risk, interest-bearing securities.
“With these new chains we’ll start to see more investors looking to leverage the underlying technology to increase efficiencies on all the things that until now have been hard to do,” Carlos Domingo, Securitize’s CEO, said in a statement.
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 13 November, according to RWA.xyz.
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 new blockchain enables the ecosystem of applications and users to natively interact with BUIDL, which can achieve on-chain yield with flexible custody, near real-time 24/7/365 peer-to-peer transfers, and on-chain dividend accrual and distribution.”
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