BlackRock has launched its tokenized BUIDL Fund across five new blockchains, marking a significant expansion of its digital asset strategy.
On November 13, BUIDL took to its Twitter to announce that it is now moving to Aptos, Avalanche (Avax), Arbitrum, Polygon, and Optimism.
This multiprotocol move is intended to increase access and scalability for investors in a broad swathe of blockchain ecosystems while continuing to build the BUIDL presence we’ve established on Ethereum and beyond.
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BlackRock BUIDL’s Real-Time Access Expands Beyond Ethereum
BlackRock’s expansion of BUIDL to new blockchains represents a forward-looking aspect of real-world asset tokenization.
These five blockchains have integrated BUIDL. This means each of these blockchains will incorporate the fund.
Each blockchain’s investors and decentralized applications (dApps) will be able to interact natively. BlackRock noted that this expansion would enable interaction with BUIDL in real-time and with no limit outside Ethereum.
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Extending the U.S. Treasuries BUIDL Ecosystem into other systems indicates a broader trend of supporting blockchain-agnostic assets.
BlackRock BUIDL Fund Expands to Top Blockchains
BlackRock said BUIDL was a top tokenized fund globally. It had launched 40 days ago. The appeal of real-world asset tokenization has been a significant source of this rapid growth.
By providing share classes across multiple blockchains, BUIDL can also support applications built on decentralized autonomous organizations (DAOs), blockchain-focused companies, and individual investors who want flexible investment options. According to an official statement by BlackRock,
“This expansion is aimed to improve utility and enable deeper participation for cross chain investors.”
Providing developers in each ecosystem the ability to build over BUIDL’s blockchain assets has improved liquidity and ease of access for users in diverse digital communities.
BlackRock said this approach makes BUIDL a critical part of blockchain infrastructure for tokenized US Treasuries and beyond.
Ondo Finance Strengthens Liquidity with BUIDL Support
Securitize CEO Carlos Domingo supported BlackRock’s multi-chain approach. He said this would help scale the tokenization of assets across digital ecosystems.
According to Domingo, BUIDL’s plan to have additional blockchain support would attract a broader client base of investors. And this will likely gain from BUIDL’s expanded shaft and rendering.
This ecosystem increases investor engagement. Also it unlocks blockchain’s potential to manage assets better and liquidate the underlying ones.
A large BUIDL project partner, Ondo Finance, confirmed and validated the fund. Ondo is looking to diversify its BUIDL reserves across the five new blockchains by supporting Ondo’s OUSG, a product that enables decentralized treasury holding, with BUIDL.
This will help achieve broader liquidity throughout blockchain ecosystems, creating a more efficient trading environment for Ondo’s investors.
RWA Data Shows Ondo Leads Tokenized Treasury Market
Data from RWA.xyz reveals that BlackRock is well positioned in the global market for tokenized real-world assets. It features just under $2.3 billion in tokenized treasuries.
The BUIDL fund, a top participant in this market and only second to Ondo’s tokenized U.S. Treasuries holdings, contributes a total of $526.19 million.
With only 7,118 wallet holders out of a total market of 86%, Ondo thoroughly shows market traction throughout the U.S.
While BlackRock has a pile of AUM, it doesn’t hold that much in tokens. This could be because BlackRock is at a relatively minor position in this area. This could signal the nascent stage for institutional adoption in the digital finance space.
Ondo’s OUSG Faces U.S. Regulatory Limitations
Ondo Finance added that OUSG and other tokenized products are unavailable to U.S. investors, partly due to regulatory restrictions.
Ondo I LP and these products are not registered under the U.S. Securities Act of 1993 or the U.S. Investment Company Act of 1940.
Therefore, OUSG tokens are not available for selling/delivering to American residents. That is unless exempted from this as determined by specific regulations.
Ondo Finance’s desire to provide financial inclusion aligns with BlackRock’s BUIDL mission of increasing access to tokenized assets worldwide. However, the rules for tokenized assets come with their complexities.
For example, in the United States, where tokens are seen as an asset class, regulatory requirements are a hurdle for most asset managers and decentralized platforms seeking to expand tokenized offerings.
