The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which launched on Ethereum in March 2024, has rapidly become the dominant player in the $2.3 billion tokenized U.S. Treasury market. With $520 million in assets under management, BUIDL achieved the position of largest tokenized fund within just 40 days of its launch. Of this total, $192 million comes through Ondo Finance, which offers a retail-friendly version of the fund.

According to the company, the expansion includes integration with Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon. Notable in the rollout is a tiered fee structure: while Ethereum, Arbitrum, and Optimism users face a management fee of 50 basis points, investors on Aptos, Avalanche, and Polygon will pay a reduced rate of 20 basis points, thanks to subsidies from blockchain-associated foundations.

The fund maintains a strict $5 million minimum investment threshold for direct institutional investors, though retail investors can access it through Ondo Finance’s product with a $5,000 minimum investment. BUIDL primarily invests in U.S. Treasuries and other highly liquid assets, maintaining a stable $1 peg.

“Real-world asset tokenization is scaling,” said Carlos Domingo, CEO of Securitize, BlackRock’s tokenization partner. The expansion aims to enhance efficiency in traditionally cumbersome financial processes through blockchain technology.

The multi-chain strategy appears well-timed, as the broader tokenized real-world asset market shows significant growth potential. McKinsey projects the sector could reach $2 trillion by 2030, suggesting BUIDL’s current half-billion-dollar position represents early adoption in an emerging market.

The fund offers institutional features including on-chain yield opportunities, real-time peer-to-peer transfers, and blockchain-native dividend distribution. In October, the platform integrated with Zero Hash, enabling digital asset firms to purchase BUIDL using USDC stablecoin and maintain their investments on-chain, while Circle stands ready to facilitate USDC-based exits for investors.

This development follows BlackRock’s broader push into digital assets, which included the launch of its iShares Bitcoin Trust earlier this year.