BlackRock's Tokenized BUIDL Fund Records Impressive Inflows

By: Isha Das

BlackRock, a global asset management giant, has seen significant success with its newly launched tokenized money-market fund, BUIDL. According to reports, the fund, which uses Ethereum blockchain to record shared ownership, has drawn well over $160 million within a week of its launch. The fund is particularly benefiting from its major role in treasury management for crypto companies, as an alternative to stablecoins and as a reliable collateral for lending and trading.

Owned by BlackRock, the USD Institutional Digital Liquidity Fund (BUIDL) has its strategic focus on cash, U.S. Treasury bills and repurchase agreements. Shareholders of the fund primarily reserve the liberty of transferring tokens to verified addresses using digital wallets approved by Securitize, BlackRock's partner for the investment initiative. The liquidity providers, such as Ondo Finance, facilitate the tokenization process, transferring substantial amounts of assets to the BUIDL fund.

As part of the crypto community, BlackRock has opened up to the idea of cryptocurrencies and tokenization within mainstream financial institutions. One of its products, the iShares Bitcoin Trust, generated more than $13 billion in inflows since it debuted as an Exchange-Traded Fund (ETF) earlier this year. As expressed by its CEO Larry Fink, BlackRock envisages a future where every financial asset will be tokenized. The company is living up to this assertion with the launch of BUIDL fund.

Apart from BlackRock's robust investment vehicle, other players like Ondo Finance have moved assets, worth approximately $95 million, to the fund. After scaling its US Treasury-backed token OUSG, Ondo became a major player in the BUIDL ecosystem with holdings amounting to $110 million.