What is BlackRock’s BUIDL?
Everything you need to know about the largest tokenized fund launched by BlackRock!
Tokenized real-world assets (RWAs) are quickly becoming one of the most important trends in crypto. They bring traditional finance assets like bonds, cash equivalents, and commodities onto the blockchain. As of April 2025, RWAs have reached a total value locked (TVL) of $11 billion, according to DeFiLlama.
Leading this space is BlackRock’s tokenized money market fund, BUIDL. Launched in March 2024, BUIDL has already surpassed $2 billion in TVL, showing strong market interest. Created with the help of Securitize, a key player in RWA tokenization, BUIDL represents a major step in blending traditional finance with blockchain technology.
This article explores how BUIDL works and why it matters.
What is BUIDL?
BUIDL is the BlackRock USD Institutional Digital Liquidity Fund. It was launched in March 2024 by BlackRock, the world’s largest asset manager, through Securitize, a leading asset tokenization platform. BUIDL is a tokenized money market fund that allows investors to earn low-risk, short-term returns by investing in assets like U.S. Treasury bills, certificates of deposit, and commercial paper.
Unlike traditional money market funds, BUIDL operates on blockchains. It was first launched on Ethereum, then expanded to Aptos, Arbitrum, Avalanche, Optimism, Polygon, and in March 2025, Solana. These blockchains allow users to access and transfer BUIDL tokens 24/7 with the security and transparency of smart contracts.
By April 15, 2025, BUIDL had grown to over $2.3 billion in total value locked, making it the largest asset in the real-world asset (RWA) category. Its explosive growth — from $667 million to $1.8 billion in just three weeks — shows strong demand for blockchain-based financial products among crypto-savvy investors.
BUIDL is designed for users who want to park idle funds and earn steady, modest returns. It brings the safety and predictability of traditional finance into the digital world. Investors can access BUIDL across multiple blockchains, improving flexibility and liquidity.
This fund represents a major step in merging traditional finance with blockchain technology. BlackRock’s move into tokenized assets shows increasing confidence in crypto infrastructure. BUIDL signals a shift toward institutional adoption of blockchain and may encourage other major players to enter the space.
How Does BUIDL Work?
BUIDL is a yield-bearing stablecoin tokenized to represent shares in a U.S. dollar-backed money market fund. Each BUIDL token is pegged to $1, and its value does not change. Instead of price appreciation, investors earn daily dividends from the fund’s returns. These dividends are paid monthly in additional BUIDL tokens, keeping the original token value stable while providing income.
The fund invests in short-term, low-risk assets like U.S. Treasury bills, cash, and repurchase agreements. It offers rate stability and regular payouts, making it attractive for large investors seeking secure yield.
BUIDL is not available on regular crypto exchanges. It acts as proof of investment and is only accessible through Securitize. To invest, users must qualify as “Qualified Purchasers” under U.S. law, which typically requires at least $5 million in investments. The minimum investment amount is also $5 million. By tokenizing real-world financial instruments, BUIDL brings traditional finance into the blockchain space. The digital format enables near-instant transactions and automated processes, reducing settlement delays and costs.
BUIDL bridges the gap between traditional and digital finance. It gives investors stability in regulated financial products with the speed and efficiency of blockchain technology.
Benefits of BUIDL
BUIDL boasts a number of significant benefits, including the following:
Low Risk and Stability
BUIDL is backed by safe, short-term assets like U.S. Treasurys and cash equivalents. This makes it a low-risk investment, ideal for preserving capital even during market downturns. Since BUIDL isn’t traded on public markets, its value has remained exactly $1 since launch, offering one of the most stable pegs in the crypto space.
Daily Yield
BUIDL generates returns daily. While the yield is modest, it’s steady and paid out monthly in new BUIDL tokens. This creates a reliable income stream without price volatility.
Trusted Backing
BUIDL is offered by BlackRock, the world’s largest asset manager. This gives investors confidence in the product’s legitimacy, quality, and regulatory compliance — especially in a space often riddled with scams.
On-Chain and Multi-Chain Access
As a blockchain-based fund, BUIDL is accessible across several popular networks like Ethereum, Solana, and Arbitrum. This allows crypto-native users to stay on-chain while tapping into traditional finance-grade products.
Fast and Flexible Redemptions
Investors can redeem BUIDL tokens 1:1 for USD quickly and securely. Redemptions are processed daily, offering more flexibility than many traditional funds.
Collateral Potential
BUIDL may soon be accepted as collateral on lending platforms, offering users another way to earn from their holdings.
Risks of BUIDL
Understanding these new elements is essential for investors:
Liquidity Issues
BUIDL is currently limited to qualified investors, which may restrict its liquidity. Without broader market access, redemptions could become slower or more complex during periods of high demand.
Technical Vulnerabilities
BUIDL operates on Ethereum and other blockchains using smart contracts. If any vulnerabilities exist in these contracts, the fund could face hacks or malfunctions, potentially putting investor funds at risk.
Market Manipulation
Though BUIDL itself isn’t actively traded like typical cryptocurrencies, its exposure to blockchain infrastructure means it could still face risks from manipulative practices like wash trading or pump-and-dump tactics — especially if trading is introduced later.
Counterparty Risk
Even though BlackRock adds strong credibility, crypto assets still face counterparty risk. If a platform listing or supporting BUIDL, like an exchange or custodian, encounters financial issues, it could delay redemptions or affect the asset’s stability.
New Asset Class Risk
Tokenized money market funds are still a new concept. Investors should be aware that market rules, regulations, and adoption may evolve quickly — bringing both opportunities and risks.
Closing Thoughts
BUIDL is a strong option for high-net-worth and institutional investors seeking on-chain exposure to traditional money market assets. It combines the reliability of BlackRock with the speed and transparency of blockchain.
Its yield-bearing stablecoin model offers daily income while keeping principal value stable. For those wanting blockchain-native investment options without sacrificing security, BUIDL is a promising choice.
As tokenized treasuries gain traction, more financial giants may enter the space. But for now, BUIDL leads the way, with its growing TVL showing strong market confidence. It sets the stage for a future where TradFi and DeFi work hand in hand.
