What is BUIDL (BUIDL)?

BlackRock Enters Blockchain

BlackRock, managing over $10 trillion in assets, began exploring blockchain technology and tokenization in the early 2020s. CEO Larry Fink, initially skeptical of crypto, became increasingly vocal about the potential of tokenized assets and blockchain settlement.

BlackRock partnered with Securitize, a platform specialized in tokenizing real-world assets, to create BUIDL as their first tokenized fund product.

Fund Launch and Growth

BUIDL launched in March 2024 on the Ethereum blockchain, initially available to qualified investors through Securitize. The fund quickly attracted institutional interest, reaching $500 million in AUM within months. The name 'BUIDL' — crypto slang for 'build' — was a deliberate nod to the blockchain community, signaling BlackRock's commitment to the space.

Key Milestones

• • BUIDL launches on Ethereum with $100K minimum investment; managed by BlackRock, tokenized by Securitize.
• • Fund surpasses $500 million AUM; becomes the largest tokenized Treasury fund.
• • Multi-chain expansion begins (Polygon, Arbitrum, Avalanche, Optimism, Aptos).
• • BUIDL surpasses $1 billion AUM; adopted as collateral by DeFi protocols and institutional platforms.

Fund Governance

BUIDL is not governed by token holders like a DAO. It is a traditional regulated fund managed by BlackRock with standard fund governance structures. The fund has a board, compliance framework, and regulatory oversight. BlackRock makes investment decisions within the fund's mandate (US Treasuries and cash equivalents). Securitize handles tokenization, KYC/AML, and transfer agent functions.

Fund Structure

BUIDL is structured as a BVI limited company fund managed by BlackRock Financial Management. The fund invests in short-term US Treasury bills, overnight repurchase agreements, and cash. Bank of New York Mellon serves as the custodian for the fund's assets. PricewaterhouseCoopers provides audit services. This institutional infrastructure ensures the fund meets regulatory standards.

Tokenization via Securitize

Securitize Markets LLC, a registered broker-dealer and transfer agent, handles the tokenization of fund shares. Each BUIDL token represents one share of the fund targeting a $1 net asset value. Tokens are issued as ERC-20 tokens on Ethereum (and equivalent standards on other chains). Securitize manages the investor whitelist — only verified, qualified investors can hold BUIDL tokens.

Daily Yield Accrual

The fund earns yield from its Treasury and repo investments. This yield accrues to token holders daily based on their holdings. Accumulated dividends are distributed monthly, typically through the minting of additional BUIDL tokens to each holder's address. This means the number of BUIDL tokens in your wallet increases over time as dividends are paid, while each token maintains its $1 target NAV.

Subscription and Redemption

Qualified investors subscribe (buy) and redeem (sell) BUIDL through Securitize. Subscriptions are processed by depositing USD (or USDC, which is instantly converted), and BUIDL tokens are minted to the investor's wallet. Redemptions work in reverse — tokens are burned and USD or USDC is returned. Circle provides real-time USDC conversion for BUIDL redemptions, enabling 24/7 liquidity.

1Compare providers

Visit Securitize (securitize.io) to review BUIDL fund documentation. Understand the minimum investment ($100K), yield structure, and redemption terms before proceeding.

2Create an account

Create an account on Securitize and complete the accredited investor verification process. This requires proof of income, net worth, or institutional status, plus standard KYC/AML verification.

3Fund your account

Fund your subscription via wire transfer or USDC deposit. Circle provides real-time USDC-to-USD conversion for fund subscriptions, enabling faster settlement than traditional wire transfers.

4Receive BUIDL Tokens

Once your subscription is processed, BUIDL tokens are minted to your whitelisted Ethereum wallet address. The number of tokens equals your investment amount at the $1 NAV target.

Wallet Requirements for BUIDL

BUIDL tokens can only be held in whitelisted wallets that have passed Securitize's KYC process:

• • Institutional Wallets: MetaMask Institutional, Fireblocks, Coinbase Prime, or other institutional custody solutions compatible with Securitize's whitelist.
• • Hardware Wallets: Ledger or other hardware wallets, provided the address has been whitelisted through Securitize's KYC process.

Hardware Wallets

A Ledger hardware wallet connected through an institutional custody framework provides strong security. The wallet address must be registered and whitelisted through Securitize before BUIDL tokens can be received. Transfers to non-whitelisted addresses are blocked by the token's smart contract.

Security Considerations

Protect your wallet's seed phrase with the same rigor as any significant financial asset. Write it down on paper, store it in a secure location, and consider multi-signature or institutional custody arrangements for large positions. Loss of wallet access does not mean loss of fund shares — Securitize maintains the authoritative investor registry and can assist with wallet migration.

DeFi Collateral

BUIDL is increasingly accepted as collateral in institutional DeFi protocols. Its Treasury backing and BlackRock management make it attractive collateral for lending platforms, derivatives protocols, and other DeFi applications that serve institutional clients. Using BUIDL as collateral allows investors to maintain their yield while accessing additional capital.

Passive Yield

The primary use of BUIDL is earning yield on idle cash. By holding BUIDL tokens, qualified investors earn the prevailing short-term Treasury rate, distributed daily and paid monthly. This provides a blockchain-native alternative to traditional money market funds with the added benefits of 24/7 settlement and blockchain-based transparency.

Settlement and Transfers

BUIDL enables 24/7, near-instant settlement of fund shares between whitelisted investors. Traditional money market fund transfers can take T+1 or longer through conventional rails. BUIDL transfers settle on-chain in minutes, with Circle providing real-time USDC liquidity for redemptions. This is particularly valuable for institutional operations that need round-the-clock settlement.

Corporate Treasury Management

Corporations and DAOs can use BUIDL for treasury management, parking idle cash in yield-bearing tokens that settle on blockchain rails. This combines the safety of Treasury-backed returns with the operational flexibility of blockchain settlement and programmability.

Risks

While BUIDL's underlying assets (US Treasuries) are considered among the safest investments, the product carries additional risks: smart contract risk (although audited and managed by BlackRock/Securitize), counterparty risk with service providers, regulatory changes that could affect tokenized securities, liquidity risk during extreme market conditions, and the minimum investment requirement ($100K) that limits accessibility.

BUIDL is not FDIC-insured and, like all money market funds, does not guarantee a $1 NAV.

Larry Fink

Chairman and CEO of BlackRock, the world's largest asset manager with over $10 trillion AUM. Fink evolved from a crypto skeptic to a vocal advocate for tokenization, calling it 'the next generation for markets.' His decision to launch BUIDL signaled institutional finance's embrace of blockchain as a settlement layer.

Carlos Domingo

Co-founder and CEO of Securitize, the digital asset securities platform that tokenizes and manages BUIDL. Domingo has been a pioneer in real-world asset tokenization, building the compliance and transfer agent infrastructure that makes regulated tokens like BUIDL possible.

Robert Mitchnick

Head of Digital Assets at BlackRock. Mitchnick has led BlackRock's blockchain strategy, including the iShares Bitcoin Trust (IBIT) and BUIDL. He serves as the primary bridge between BlackRock's traditional asset management expertise and the digital asset ecosystem.

Joseph Chalom

Global Head of Strategic Ecosystem Partnerships at BlackRock. Chalom has been instrumental in building BlackRock's relationships with blockchain infrastructure providers, DeFi protocols, and digital asset platforms, enabling the distribution and integration of BUIDL across the crypto ecosystem.

Regulatory Overview

BUIDL operates within a well-defined regulatory framework as a registered fund product. Unlike most crypto tokens, BUIDL is a security issued in compliance with existing securities regulations. This regulatory clarity is a key feature of the product, providing institutional investors with the compliance framework they require.

Regulation by Jurisdiction

BUIDL's regulatory status differs from typical crypto tokens:

United States: BUIDL is offered under Regulation D (accredited investors only) and managed by a registered investment adviser (BlackRock). Securitize Markets is a registered broker-dealer and transfer agent. The fund complies with SEC regulations for money market instruments. BUIDL is not available on public exchanges.

Canada: BUIDL may be available to qualified Canadian institutional investors through cross-border securities exemptions. Availability depends on specific provincial securities regulations and the investor's qualification status.

European Union: Tokenized funds like BUIDL may fall under MiCA regulations for crypto-assets or existing securities frameworks depending on classification. EU institutional investors may access BUIDL through applicable cross-border fund distribution rules.

Australia: Australian institutional investors may access BUIDL through applicable foreign fund exemptions. ASIC's approach to tokenized securities is evolving, and products like BUIDL may help inform regulatory frameworks for tokenized funds.

BUIDL's regulatory position is unique in the crypto landscape — it is a fully regulated financial product that happens to use blockchain as its settlement layer. This positions it as a bridge between traditional finance and blockchain, and its regulatory framework may serve as a template for future tokenized fund products.

As more jurisdictions develop frameworks for tokenized securities, BUIDL's accessibility is expected to expand.