Hu 火星 Finance reports that on October 19, according to Bloomberg, BlackRock, the world’s largest asset manager, is exploring expanding the use cases of tokenized assets beyond the crypto market into traditional finance, enabling them not only as collateral but also for payments. BlackRock is shifting its focus from issuing stocks, bonds, and money market funds on blockchain networks toward improving the transfer mechanisms and collateral applications of these assets. Through tokenization, investors can directly transfer their held assets to other investors or use them as collateral for transactions without first redeeming them for cash. BlackRock is also continuing to expand its tokenized product offerings. The company’s tokenized money market fund, BUIDL, launched in 2024, has grown its assets under management to approximately $2.3 billion. Since then, it has rolled out related products in the U.S. and Europe, and in September this year received approval to launch a digital liquidity fund denominated in Hong Kong dollars. However, the ability of tokenized assets to be transferred on blockchain networks 24/7 does not mean they can be redeemed for cash at any time. The International Monetary Fund has pointed out that fragmentation across platforms and legal uncertainties are the main barriers to the development of tokenized assets. The International Swaps and Derivatives Association (ISDA) has also stated that issues such as custody arrangements, collateral rules, and cross-border legal recognition remain unresolved. Nikhil Sharma, Director of BlackRock’s Digital Assets team, said early users of tokenized funds were primarily participants in the crypto market seeking to earn yield while holding stablecoins. He added that the key lies in establishing integration mechanisms so that traditional financial institutions can use tokenized products without building separate systems. He expects the adoption scope of these products to expand further over time.
BlackRock's tokenized money market fund BUIDL reaches $2.3 billion in AUM and expands collateral usage
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Summary
BlackRock’s tokenized money market fund, BUIDL, now manages $2.3 billion in assets, according to market news. The firm is expanding tokenized assets into traditional finance for payments and collateral, broadening its range of tokenized products in the U.S., Europe, and Hong Kong. A crypto market update highlights challenges for tokenized assets, including fragmentation and legal uncertainty. BlackRock’s Nikhil Sharma noted that early investors are crypto participants seeking yield on stablecoins, and integration mechanisms are needed to enable traditional institutions to adopt these products.
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