BlackRock and Securitize are expanding their tokenized fund BUIDL to five new blockchains, including Aptos, Avalanche, and Polygon, aiming to offer more cost-effective options for investors.
BlackRock and Securitize are extending the availability of their tokenized product, BUIDL, to five additional blockchains: Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon.
The $522 million fund, which was initially introduced on Ethereum in March, has successfully secured the title of the world’s largest tokenized fund in under 40 days. The current value of the tokenized Treasury market is $2.3 billion.
Management fees will be established at 50 basis points for Ethereum, Arbitrum, and Optimism, but only 20 basis points for Aptos, Avalanche, and Polygon.
“We aimed to create an ecosystem that was thoughtfully designed to be digital and capitalize on the benefits of tokenization,” stated Carlos Domingo, CEO and co-founder of Securitize.
“We are enthusiastic about the addition of these blockchains to the BUIDL ecosystem, as real-world asset tokenization is expanding.” The emergence of these new chains will result in an increase in the number of investors who are interested in utilizing the underlying technology to enhance the efficiency of tasks that have previously been challenging to complete.
BlackRock’s objective is to expand access and offer more cost-effective alternatives for investors, particularly on networks with reduced fees, by integrating BUIDL with additional blockchains.
BUIDL is able to provide a variety of features, such as earning yield directly on the blockchain, flexible asset holding options, rapid peer-to-peer transfers that are available at any time, and automatic dividend payments, as more applications and users are able to collaborate with it as a result of each new blockchain integration.
Institutional demand for crypto products is on the rise, as BRN has noted. Bitcoin and Ethereum have both experienced substantial ETF inflows in the wake of Donald Trump’s electoral victory.
On Wednesday, BTC and ETH received $510M and $147M, respectively. “Despite a slight two-day dip in net inflows for BTC, trading volume remains close to record highs, signaling robust demand from investors but also some growing caution around Bitcoin’s current price level,” Valentin Fournier, an analyst at BRN, reported.
The SEC authorized modifications to stock exchange regulations last month that permit the listing of options that are linked to Bitcoin ETFs. The sanction enables NYSE to provide options on the Grayscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB), while Cboe Global Markets is permitted to list options on the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB).