On November 13th, BlackRock announced that it would be expanding its tokenized BUIDL Fund to five major blockchain networks: Aptos, Avalanche, Arbitrum, Polygon, and Optimism. This expansion significantly increases the fund’s accessibility. Moreover, it allows more investors to use BUIDL across different blockchains through new ‘share classes’ specifically designed for each network.
According to BlackRock, this move is a big step for real-world asset tokenization. By expanding to several blockchain ecosystems, BUIDL enables users and applications to interact directly with it, bringing the fund’s benefits to a broader audience.
Source | X @securitize
Multi-Chain Expansion and Market Impact
Moving Beyond Ethereum
By expanding to five additional blockchains, BlackRock is making BUIDL accessible outside of Ethereum. This expansion allows for near real-time, 24/7, 365-day native interaction with the fund. According to RWA.xyz, BlackRock currently leads the $13 billion global real-world asset (RWA) on-chain market, with about $2.3 billion in tokenized U.S. treasuries, of which BUIDL accounts for $526.19 million. This places BUIDL just behind Ondo, which has $652.99 million in tokenized assets.
BUIDL’s Benefits for Cross-Chain Investors
Within 40 days of its launch, BUIDL became the world’s largest tokenized fund. According to BlackRock, BUIDL now makes it easier for cross-chain investors, DAOs (decentralized autonomous organizations), and other digital asset-based companies to use its services. The fund allows developers to build on the BlackRock fund in the blockchain ecosystem they prefer, providing flexibility and more options for tokenized asset accessibility.
“Real-world asset tokenization is scaling, and we’re excited to have these blockchains added to increase the potential of the BUIDL ecosystem”
– Carlos Domingo, Securitize CEO and co-founder
Carlos Domingo expressed his enthusiasm for the project, explaining that adding more blockchains would likely attract investors interested in the efficiency and technology benefits of BUIDL.
Overview of Blockchains in BlackRock’s BUIDL Expansion
Avalanche (AVAX)
- Niche: Gaming, DeFi, and Custom Blockchain Networks
- Details: Avalanche has become popular in the blockchain gaming market due to its subnet feature, allowing developers to create custom blockchains for specific applications. This feature is helpful for games and DeFi (Decentralized Finance) projects that require custom settings for speed, privacy, or token usage. Games like DeFi Kingdoms and Shrapnel use Avalanche subnets, and its fast, low-cost transactions make it a favorite in the DeFi space.
Optimism (OP)
- Niche: Scaling Ethereum with Optimistic Rollups
- Details: Optimism focuses on an optimistic rollup solution to scale Ethereum. This makes Optimism a great choice for projects looking for fast, low-cost transactions while still benefiting from Ethereum’s security. Synthetix, for example, migrated to Optimism to reduce gas fees and speed up transactions. The network’s simplicity makes it an easy choice for developers who want to scale with minimal changes.
Polygon (POL)
- Niche: Blockchain Interoperability and Developer Support
- Details: Polygon offers several scaling solutions for Ethereum, including Plasma chains, PoS chains, and zkRollups. It provides an entire ecosystem for developers who want to build or transfer decentralized apps (dApps) easily. Projects like Aavegotchi and QuickSwap use Polygon for its high transaction capacity and cost-efficiency. Recently, Polygon partnered with BlackRock to help with real-world asset tokenization, showing its potential in connecting traditional finance to blockchain.
Aptos (APT)
- Niche: Digital Identity and Smart Contract Technology
- Details: Aptos uses the Move programming language to improve security, making it especially useful for applications needing strong digital identity verification. This focus helps apps like Wormhole to securely transfer assets across chains. By joining the BUIDL fund, Aptos opens up new possibilities in real-world asset tokenization.
Arbitrum (ARB)
- Niche: High-Performance Ethereum Scaling with Enhanced Security
- Details: Arbitrum offers a reliable scaling solution for Ethereum with advanced multi-round fraud proofing. This security feature makes it an ideal choice for high-volume DeFi projects, such as GMX, a platform for trading decentralized perpetual futures. Arbitrum combines high performance and security, making it a strong choice for projects needing both.
Final Thoughts
The expansion of BlackRock‘s tokenized BUIDL Fund across multiple blockchains marks a significant development in the world of real-world asset tokenization.
Remember, this information is not financial advice. Millionero encourages readers to do your own research (DYOR) before investing. You can find more in-depth insights on blog.millionero.com. When ready, you can explore the tokens discussed today in both spot and futures markets on millionero.com.