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The token BUIDL issued by BlackRock has surpassed 1 billion dollars in assets.
BUIDL is a security token on Ethereum issued by BlackRock together with Securitize and launched last year. Its purpose is to tokenize the BlackRock BUIDL Fund, which is a fund that provides an on-chain USD yield on a large scale.
The acronym BUIDL stands for BlackRock USD Institutional Digital Liquidity.
BlackRock and tokenization with BUIDL
The BlackRock BUIDL Fund is a traditional fund, which, however, also operates with stablecoin.
The idea of the US giant was to tokenize this fund by creating the namesake BUIDL token distributed on the Ethereum blockchain.
However, it is not a crypto, so much so that it is not listed on any crypto exchange, but a security token that can only be traded on specific regulated and authorized platforms.
Unfortunately, in the crypto markets, there are several tokens with the same name that are, however, fakes from which it would be better to stay away.
This initiative by BlackRock is not dedicated to retail investors, but to selected investors who have had private access to the token. In fact, there are only 61 holders of this token in total.
At present, small retail investors do not yet have access to the exchanges of BlackRock’s BUIDL token.
In fact, it is a kind of experiment, and it seems to be successful, given that its assets under management are increasing. At this point, it is reasonable to expect that in the future BlackRock may issue other security tokens like this, perhaps tokenizing other funds.
The BlackRock BUIDL Fund
The underlying of the security token BUIDL is the BlackRock USD Institutional Digital Liquidity Fund.
This fund invests in liquid assets that produce returns, such as obbligazioni statali USA, and aims to distribute these returns to the token holders.
In fact, the market value of a BUIDL token is always and only 1$, like a stablecoin, so you don’t earn by buying and selling it, or by trading it, but only by owning it.
Initially in March of last year, when it was launched, the fund had assets worth $100,000. Therefore, it had issued 100,000 BUIDL tokens at the price of $1.
Now the value of the assets under management, as well as the number of tokens, has increased tenfold.
To tell the truth, just a few weeks after the launch, it had reached $300,000 in assets, and by July it had already surpassed half a million. Therefore, the fastest growth was recorded in the first months after the launch.
Since then, the growth has been much more gradual, so much so that by December it had only reached $550,000.
The 2025 was started at $650,000, and at the beginning of this week they were still only $668,000.
The BUIDL token
The BUIDL token is used, for example, as a fundamental reserve asset for yield-generating offerings, and it is increasingly used as collateral on trading platforms. In fact, it is playing a significant role in the tokenization of traditional financial instruments.
In fact, the crypto tokens supported by US government bonds are among the most prominent in the process of expanding the tokenization of real-world assets (RWA), as it is the traditional finance companies that want to tokenize traditional instruments such as bonds, private credit, and funds to trade them indirectly on the blockchain. The goal is to achieve faster trades and greater operational efficiency.
In turn, the same BUIDL token, which generates yields, is used as a building block for other yield-generating offerings, and it is, for example, the key reserve asset for Ethena’s USDtb token.
“`htmlThe new allocation
“`In recent days, the fund has allocated 200 million dollars on the USDtb token of Ethena.
Thanks to this new allocation, and a slight increase in the others, the billion-dollar mark has been surpassed.
The USDtb token of Ethena, supported by the stablecoins USDC and USDT and by the same BUIDL tokens, generates returns, and this is why it has been included in the portfolio of the BUIDL fund.
The founder of Ethena, Guy Young, stated:
“The decision of Ethena to increase the investment of USDtb in BUIDL reflects our deep conviction in the value of tokenized assets and the significant role they will continue to play in modern financial infrastructure”.
English (US) ·