BlackRock’s Multi-Chain Strategy: BUIDL Fund Expands Beyond Ethereum

BlackRock has expanded its $522 million tokenized fund, BUIDL, across multiple blockchain networks beyond Ethereum, offering institutional investors greater access and flexibility in digital U.S. Treasury yields.

Multi-Chain Move Broadens Access to Tokenized U.S. Treasuries

On Wednesday, global investment giant BlackRock announced that its USD Institutional Digital Liquidity Fund (BUIDL), the largest tokenized fund by assets, is expanding beyond Ethereum to support additional blockchain networks. Now operating across Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon PoS, BUIDL aims to extend its reach, offering institutional investors increased flexibility and options for accessing tokenized U.S. Treasury yields.

Collaboration with Securitize Markets Drives Expansion

The multi-chain launch is being facilitated through a partnership with Securitize Markets, a leading tokenization platform. Initially introduced on Ethereum about eight months ago, BUIDL has now scaled its offerings to new ecosystems with the goal of enabling broader access and interoperability across blockchain platforms. 

Robert Mitchnick, BlackRock’s Head of Digital Assets, stated, 

“This is the latest progression of our digital assets strategy. We are focused on developing solutions in the digital assets space that help solve real problems for our clients, and we are excited to work with Securitize.”

Optimized Fee Structure Across Chains

BlackRock’s expanded fund introduces a tiered fee model: Aptos, Avalanche, and Polygon carry a 20 basis point management fee, while Ethereum, Arbitrum, and Optimism’s OP Mainnet fees are set at 50 basis points. This structure reflects the varying demand and infrastructure costs associated with operating across different blockchain environments.

Enhanced Investor Benefits through Tokenization

Tokenization is central to BlackRock’s digital asset strategy, with BUIDL offering on-chain trading and settlement options designed to improve transparency, accessibility, and liquidity for institutional investors. Tokenization of BUIDL also enables the issuance and seamless transfer of ownership across blockchains, thereby creating new opportunities for on-chain asset trading. BNY Mellon plays a key role by facilitating interoperability between traditional and digital markets, reinforcing BlackRock’s commitment to bridging traditional finance with blockchain technology.

Daily Dividends and Stable Value for Investors

BUIDL targets a stable $1 value per token, allowing investors to earn daily accrued dividends, which are paid monthly as additional tokens directly into investors’ wallets. The fund’s assets are allocated entirely to cash, U.S. Treasury bills, and repurchase agreements, aiming to provide a reliable yield for investors holding the tokenized assets. BlackRock ensures flexibility in token custody, offering investors storage options while enabling token transfers around the clock to pre-approved investors.

Positive Market Response and Industry Support

Following the expansion, the native tokens of the blockchains hosting BUIDL—including ARB, OP, APT, AVAX, and POL—registered immediate market gains. OP led the pack with a 3.3% increase within an hour of the announcement.

Key industry players such as Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks are onboarded to support the tokenized fund, alongside BlackRock Financial Management, Inc., as the investment manager and BNY Mellon as the fund’s custodian. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.