BlackRock’s on-chain fund BUIDL has shattered expectations by surpassing $1 billion in assets under management, marking a watershed moment for institutional adoption of blockchain-based financial products. Launched in March 2024 as a collaborative effort between financial giant BlackRock and tokenization platform Securitize, BUIDL represents the initial institutional-level on-chain fund to achieve this significant milestone in the rapidly evolving digital asset ecosystem.
The fund’s exponential growth was substantially accelerated by a recent $200 million investment from Ethena, which propelled BUIDL over the billion-dollar threshold. This strategic capital injection underscores the increasing confidence major players are placing in tokenized treasury products, which now represent approximately $4 billion in total market value, with BUIDL commanding roughly 25% market share.
Initially deployed on Ethereum, BUIDL has expanded its blockchain compatibility to include Aptos, Arbitrum, Avalanche, Optimism, and Polygon, offering cross-chain bridging via Wormhole’s infrastructure. Unlike typical Initial Coin Offerings, BUIDL provides regulated investment opportunities with established legal protections for participants. The achievement has been lauded by industry leaders, with Securitize CEO Carlos Domingo emphasizing that BUIDL’s success demonstrates tokenized securities reality in the financial marketplace. The fund provides qualified investors with exposure to short-term U.S. government bonds, delivering USD yields on-chain while maintaining flexible custody options through established custodians including Anchorage Digital, BitGo, Copper, and Fireblocks.
BUIDL’s multi-chain expansion enables institutional-grade access to on-chain treasury yields with premier custody solutions.
BUIDL’s operational framework incorporates daily dividend distributions and near real-time peer-to-peer transfer capabilities, reducing counterparty risk and enhancing liquidity for diverse financial activities. Bank of New York Mellon serves as the primary custodian for cash and securities, further legitimizing the fund’s institutional-grade infrastructure.
The fund’s remarkable achievement has catalyzed increased interest from traditional finance entities exploring entry points into the tokenized treasury sector. This competitive landscape is evidenced by Circle’s recent acquisition of Hashnote, a direct competitor in the tokenized treasury space.
BlackRock’s successful implementation of BUIDL aligns with its accelerated strategy for Web3 and digital asset management services, positioning the company at the forefront of financial innovation that combines traditional asset management with blockchain technology’s transparency, efficiency, and fractional ownership benefits.
