what happen?
Asset management company BlackRock launched the first tokenized fund product BUIDL on Ethereum in March, which uses blockchain technology to "tokenize" traditional fund products so that these tokens can be freely traded on the blockchain. Transaction, transfer. Now BlackRock has announced that in addition to Ethereum, the product will also be launched on the Aptos, Arbitrum, Avalanche, Optimism and Polygon blockchains.
As the largest tokenized fund on the chain, BUIDL focuses on investing in U.S. short-term Treasury bonds and other similar low-risk assets, with assets under management reaching US$520 million.
BUIDL's continued growth in asset management scale also symbolizes the increasing demand for "tokenization" of asset management.
BlackRock tokenization fund BUIDL expands to more blockchains
Asset management company BlackRock recently announced that it will expand its tokenized fund BUIDL from the original Ethereum to Aptos, Arbitrum, Avalanche, Optimism and Polygon blockchains.
Tokenized funds use blockchain technology to "tokenize" traditional fund products, allowing these tokens to be freely traded on the blockchain. Simply put, as long as the holder of the BUIDL token purchases, it is equivalent to investing in the fund product, and investors can enjoy flexible asset management, including 24-hour peer-to-peer asset trading, instant income distribution, etc.
BUIDL is a fund that focuses on investing in short-term U.S. Treasury bonds and other similar low-risk assets. BlackRock stated that the expansion of BUIDL to other blockchains is mainly to achieve seamless connections between various blockchain ecosystems. Currently, the total locked assets of tokenized U.S. Treasury bonds have reached US$2.3 billion, and BUIDL has become the largest tokenized fund with an asset management scale of US$520 million.
BUIDL's achievements not only make it the largest participant in the U.S. Treasury tokenization market, but also symbolize the increasing demand for "tokenization" of asset management.
Tokenized asset market potential is as high as $30 trillion
The tokenization market that BlackRock has touched is actually being deployed by financial giants such as Visa, Franklin Templeton, and J.P. Morgan.
Colin Butler, senior director of blockchain Polygon, said that from U.S. Treasury bonds to art, the market potential of these tokenized assets is as high as $30 trillion. According to foreign media (Cointelegraph) reports, the U.S. Treasury Department’s fourth quarter report of 2024 also pointed out that distributed ledger technology and smart contracts can enhance the transparency of transactions.
🚀Distributed Ledger Technology (DLT): One of the basic technologies of the blockchain, data is jointly maintained and verified by multiple nodes, and each node has a complete copy of the data. Through the decentralization and consensus mechanism of DLT, blockchain ensures that transactions are transparent and cannot be tampered with by a single entity. Therefore, it is particularly suitable for applications that require a high degree of trust, such as finance and supply chain.
The report states: “Immutable ledger technology can increase the transparency of Treasury market operations and provide regulators, issuers and investors with more immediate insights into trading activity.”
In addition to BlackRock's new actions, Franklin Templeton also recently announced that it will launch a tokenized fund on Coinbase's second layer network (Layer2) Base. Libeara, a tokenization platform supported by Standard Chartered Bank, has joined hands with FundBridge Capital, a fund platform solution, to launch a tokenized U.S. Treasury bond fund.
Source: Cointelegraph, CoinDesk
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