BlackRock has announced the introduction of new share classes for its USD Institutional Digital Liquidity Fund, known as BUIDL. This move will now enable access to BUIDL across several major blockchain platforms including Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon.
By launching new share classes on these diverse blockchains, the fund will integrate more seamlessly with various blockchain-based financial products and infrastructures.
This integration facilitates a range of functions such as on-chain yield generation, flexible custody solutions, and 24/7 peer-to-peer transfers, alongside real-time dividend accrual and distribution directly on the blockchain.
Within just 40 days of its inception, BUIDL has quickly become the largest tokenized fund globally in terms of assets under management (AUM).
This expansion not only boosts the fund’s utility for existing investors but also opens new doors for decentralized autonomous organizations (DAOs), digital asset firms, and individual investors, keen on leveraging BlackRock’s robust fund infrastructure within their respective blockchain environments.
Fee Structure and Added Capabilities
The fund’s management fees vary depending on the blockchain: 20 basis points (bps) are applicable for integrations with Aptos, Avalanche, and Polygon, while a higher fee of 50 bps is set for Arbitrum, Optimism, and Ethereum platforms.
This tiered fee structure is designed to cater to the distinct characteristics of each blockchain network, thereby optimizing the fund’s interaction across different ecosystems.