BlackRock’s BUIDL Fund Surges Past $2.1 Billion in Assets
blackrock’s BUIDL fund has experienced a significant surge in assets under management (AUM).As of April 11, the fund surpassed $2.1 billion on Ethereum, marking a substantial milestone. This growth reflects the increasing acceptance of blockchain in conventional finance.
Despite market downturns, investor interest in blockchain-based securities is on the rise. The BUIDL fund’s AUM has grown from around $500 million to over $2 billion in just a few weeks. This growth coincided with economic uncertainties and trade war fears, which led investors to seek safer, yield-bearing options like U.S.treasuries.
The BUIDL fund generates yield thru investments in U.S. treasuries. As treasury yields rise, the fund becomes more attractive to domestic investors.On April 11, the 10-year U.S.treasury yield increased by 13 basis points.
BlackRock’s BUIDL fund leverages blockchain technology to enhance traditional finance.Unlike most crypto tokens, BUIDL tokens are regulated securities. They require a strict Know Your Customer (KYC) process for trading.The fund benefits from blockchain’s efficiency, offering instantaneous and obvious settlements.
Key features of the BUIDL fund include:
- Tokenization on seven chains, with 90.5% on Ethereum
- Programmable compliance through smart contracts
- Efficient and transparent settlement
This growth underscores the potential of blockchain in transforming traditional finance, making it more efficient and accessible.
