BlackRock's tokenized money market fund will be launched on major blockchain networks including Aptos, Arbitrum, Avalanche, Optimism and Polygon.
The world's largest asset manager BlackRock will launch its tokenized money fund on multiple different blockchain networks, according to a announcement on November 13.
BlackRock's USD Institutional Liquidity Fund (BUIDL) will expand to the Aptos, Arbitrum, Avalanche, Optimism and Polygon networks. The fund was initially launched on the Ethereum network.
Tokenized by Securitize, BUIDL is a money market fund, primarily investing in short-term U.S. Treasury bills (T-Bills) and similar low-yield, low-risk securities.
"With these new chains, we will see more investors leveraging the underlying technology to increase efficiency for activities that were previously very difficult to execute," said Carlos Domingo, CEO of Securitize.
Demand for tokenized real-world assets (RWAs) providing low-risk yields from T-Bills and other money market instruments is growing rapidly.
According to RWA.xyz, tokenized U.S. Treasury debt has a total locked value of around $2.3 billion as of November 13.
BUIDL is the largest tokenized treasury fund by assets under management (AUM), followed by the Franklin OnChain US Government Money Fund (FOBXX), with AUMs of around $510 million and $450 million respectively.
The multi-chain launch allows BUIDL to be utilized in leading blockchain-based financial products and infrastructure across different ecosystems, BlackRock said.
"Each new blockchain enables the ecosystem of applications and users to naturally interact with BUIDL, delivering on-chain yield with flexible asset management, 24/7/365 near real-time peer-to-peer transfers, and on-chain compounding and dividend distribution."
Tokenized RWAs — from T-Bills to artworks — represent a global market opportunity worth $30 trillion, according to Colin Butler, Global Head of Corporate Development at Polygon, in an interview with Cointelegraph in August.
"As per the U.S. Treasury's Q4 2024 report, tokenization can improve liquidity in Treasury bond trading by reducing frictions in operations and settlement."
The report stated that distributed ledger technology (DLT) and smart contracts can bring particular benefits.
"Immutable ledgers could enable greater transparency in Treasury market operations, reducing opacity and providing regulators, issuers, and investors with real-time visibility into trading activities," the report said.
Franklin Templeton is also launching its tokenized money fund on Coinbase's Base layer-2 network, according to an announcement on October 31.
Libeara and FundBridge Capital are also launching a tokenized U.S. Treasury (T-Bill) bond fund on the Avalanche network.
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The article BlackRock's BUIDL Fund Expands to Multi-Chain first appeared on CoinMoi.
