KEY TAKEAWAYS
- Securitize expands the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) to the Solana network, enhancing its reach and capabilities.
- BUIDL surpasses $1 billion in assets under management, marking a significant milestone in the tokenized treasury market.
- The fund now operates on seven blockchains, with cross-chain interoperability facilitated by Wormhole, offering investors greater flexibility and access.
- Solana’s speed, scalability, and cost efficiency are highlighted as key factors in driving the adoption of tokenized real-world assets.
Securitize has announced that the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), tokenized by Securitize, will expand its reach with the introduction of a new share class on the Solana network. This development was announced here.
BUIDL recently achieved a significant milestone by surpassing $1 billion in assets under management. This marks a key development in the tokenized treasury market. Launched in March 2024, BUIDL represents BlackRock’s first tokenized fund issued on a public blockchain.
The fund offers qualified investors access to U.S. dollar yields on-chain, featuring flexible custody, daily dividend payouts, and near real-time peer-to-peer transfers available 24/7/365. With its expansion to Solana, investors can now leverage the speed, throughput, and cost-effectiveness of the Solana blockchain.
Expanding Blockchain Access
BUIDL is now accessible on seven blockchains: Aptos, Arbitrum, Avalanche, Ethereum, Optimism, Polygon, and Solana. Cross-chain interoperability is facilitated by Wormhole, enabling seamless and secure token transfers. This expansion enhances options and access for investors, decentralized autonomous organizations (DAOs), and other digital asset-native firms.
Custodians supporting BUIDL investors include Anchorage Digital, Copper, and Fireblocks, with Bank of New York Mellon serving as the fund’s cash and securities custodian.
Market Growth and Future Prospects
In the year since BUIDL’s launch, there has been significant growth in demand for tokenized real-world assets (RWAs). Carlos Domingo, Co-founder and CEO of Securitize, noted the value of bringing institutional-grade products on-chain. He stated that expanding BUIDL to Solana, known for its speed, scalability, and cost efficiency, is a logical progression.
Lily Liu, President of the Solana Foundation, highlighted Solana’s potential to drive the next wave of adoption for tokenized RWAs. She emphasized the network’s speed, low costs, and active developer ecosystem as key advantages.
Why This Matters: Impact, Industry Trends & Expert Insights
The expansion of BlackRock’s BUIDL fund onto the Solana network signifies a strategic move to enhance the accessibility and efficiency of tokenized funds. This development is pivotal as it integrates the benefits of Solana’s blockchain, such as speed and cost-effectiveness, with institutional-grade financial products.
Recent industry reports indicate that the tokenized real-world asset market is expected to reach up to $50 billion by the end of 2025. This aligns with BlackRock’s expansion to Solana, enhancing the fund’s reach and efficiency in the growing market for tokenized assets.
As per insights from Benzinga, BlackRock’s strategic engagement with blockchain technology, including the BUIDL fund, underscores its influence in promoting institutional investment in crypto assets. This supports the fund’s role in bridging decentralized and traditional finance, furthering the adoption of digital financial instruments.
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