BlackRock is expanding its tokenised fund BUIDL to the networks of 5 leading altcoin projects. These networks include Aptos, Arbitrum, Avalanche, Optimism and Polygon. BUIDL is currently the leader in tokenised government securities with $517 million in assets under management. Du also corresponds to a market share of approximately 22 per cent.
BUIDL is expanding to the network of five more altcoin projects!
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), tokenised in collaboration with Securitize and first launched on Ethereum , is expanding to Aptos, Arbitrum, Avalanche, Optimism and Polygon networks. Securitize released a statement on Wednesday regarding the issue, saying that each blockchain plugin will allow their respective applications to interact natively with BUIDL. This increases access for investors, DAOs and other digital asset-specific firms by allowing developers to build on the fund in their preferred ecosystem, it said in a statement. The tokenised fund provides on-chain returns, dividend accrual and near real-time peer-to-peer transfers. Carlos Domingo, CEO and co-founder of Securitize, made the following statement on the subject:
We wanted to develop an ecosystem that is thoughtfully designed to be digital and take advantage of the benefits of tokenisation. Real-world asset tokenisation is scaling and we are excited to add to these Blockchains to increase the potential of the BUIDL ecosystem. With these new Blockchains , we will start to see more investors looking to leverage the underlying technology to drive efficiencies in everything that has been difficult to do until now.
BNY will be the fund manager for these additional Blockchains as well as BUIDL on Ethereum. It will also continue to act as custodian.
Growing market for tokenised government securities
As you follow from Kriptokoin.com, OnChain U.S. Government Money Fund (FOBXX), represented by Franklin Templeton’s BENJI token, was launched in 2021. Thus, it became the first US registered fund to use a public Blockchain. It currently operates on Aptos, Arbitrum, Avalanche, Stellar and Polygon.
However, BlackRock’s BUIDL made a quick entry after its launch in March. BUIDL managed to become the largest fund in less than 40 days. Thus, it quickly began to dominate the tokenised government securities space. According to data compiled by asset management firm 21.co, the parent company of Bitcoin exchange-traded fund provider 21Shares, BUIDL has since reached $517 million in assets under management. This equates to a market share of approximately 22 per cent of the $2.3 billion market. The BENJI product has $403 million in assets under management, according to 21.co. Thus, it remains the second largest product.
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