Photo credit: Michael Nagle/Bloomberg

BlackRock has expanded its BlackRock USD Institutional Digital Liquidity Fund (BUIDL) by launching new share classes across multiple blockchain ecosystems. 

The fund, tokenized by Securitize, initially launched on the Ethereum blockchain in March 2024 and has since grown to hold the largest assets under management (AUM) of any tokenized fund globally. With this expansion, BUIDL will now operate across Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon.

The addition of these blockchains broadens BUIDL’s reach, enabling new blockchain-based financial products and increasing accessibility for decentralized organizations and digital asset firms. 

The updated structure allows for 24/7 peer-to-peer transfers, on-chain yield, and automated dividend distribution without the need for intermediaries, which may reduce friction for investors. 

BlackRock’s collaboration with blockchain firms Aptos Foundation, Avalanche Inc., and Polygon Labs will allow for ecosystem-specific customization and interaction through tokenized assets, as noted by BlackRock’s fund administrator, BNY Mellon, which supports both traditional and digital finance.

Carlos Domingo, CEO of Securitize, highlighted the growing role of real-world asset tokenization within digital finance, stating, “Real-world asset tokenization is scaling, and we're excited to have these blockchains added to increase the potential of the BUIDL ecosystem.” Domingo added that the initiative seeks to leverage tokenization’s efficiencies and increase investor access to diverse asset classes through flexible, cross-chain ecosystems.

Each blockchain offers distinct features for BUIDL, such as Arbitrum’s Optimistic Rollup technology for low-cost transactions, Avalanche’s high-performance compatibility with Ethereum Virtual Machine (EVM), and Optimism’s Superchain for enhanced scalability and cross-chain governance. 

Management fees for each network vary, with Arbitrum, Ethereum, and Optimism set at 50 basis points, while Aptos, Avalanche, and Polygon charge 20 basis points.

BlackRock’s latest venture into the evolving tokenization market, leveraging blockchain technology, comes at a time when the Crypto Fear and Greed Index highlights extreme greedy behaviour among investors.