BlackRock’s BUIDL Fund Surges Past $2.1 Billion in Assets
BlackRock’s BUIDL fund has experienced a critically important surge in assets under management (AUM). As of April 11, the fund surpassed $2.1 billion on Ethereum,marking a considerable milestone. This growth reflects the increasing acceptance of blockchain technology in conventional finance.
Despite recent 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, as investors sought safer, yield-bearing instruments like U.S. treasuries.
Interestingly, the fund’s success is tied to its unique structure.BUIDL tokens are securities that generate yield through investments in U.S. treasuries. Unlike most crypto tokens, they are subject to strict regulations and require a rigorous KYC process for trading.
The fund leverages blockchain technology for efficiency and transparency. It offers instantaneous and clear settlements, thanks to smart contracts that ensure regulatory compliance. This makes BUIDL tokens more efficient than traditional off-chain instruments.
With treasury yields rising, the BUIDL fund is highly likely to attract more domestic investors.The fund’s growth on Ethereum, which accounts for 90.5% of its AUM, highlights the potential of blockchain in traditional finance.
