BlackRock's Tokenized Money Market Fund BUIDL Reaches $2.3 Billion in Assets, Expands Collateral Uses

BlackRock is exploring the application of tokenized assets beyond the cryptocurrency market into traditional finance, allowing them to be used not only as collateral but also for payments. The focus will shift from issuing stocks, bonds, and money market funds on blockchain networks to improving the transfer methods and collateral uses of these assets. Through tokenization, investors can directly transfer their held assets to other investors or use them as trading collateral without needing to redeem them for cash first. BlackRock's tokenized money market fund BUIDL, launched in 2024, has seen its assets under management grow to approximately $2.3 billion, with related products launched in the U.S. and Europe, and approval received in September to launch a digital liquidity fund denominated in Hong Kong dollars. Although tokenized assets can be transferred on blockchain networks around the clock, this does not mean they can be redeemed for cash at any time. The International Monetary Fund points out that fragmentation across different platforms and legal uncertainties are major factors hindering the development of tokenized assets. Nikhil Sharma, director of BlackRock's digital asset team, stated that early investors in tokenized funds are primarily participants in the cryptocurrency market, and the key is to establish a bridging mechanism that allows traditional financial institutions to use tokenized products without having to build independent systems, with expectations that the application scope of related products will further expand.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.