BlackRock Debuts BUIDL Tokenized Fund on Avalanche

Securitize, in collaboration with BlackRock, is launching its BUIDL tokenized fund on the Avalanche network, with the contract already deployed and funded, signaling a concrete initiative.

This blockchain-based fund invests in U.S. Treasury bonds, cash, and repurchase agreements, having previously succeeded on Ethereum with over $500 million in assets.

CryptoNoody reported that the same owner of the BUIDL contract on Ethereum, address “0xe01605f,” also manages the Avalanche contract, which was funded with $1 million.

While one million BUIDL shares have been issued, trading has not yet started, and neither Securitize nor BlackRock has officially announced the fund. Observers speculate that the firm may be testing Avalanche’s suitability for tokenized funds, suggesting a potential delay before trading begins.

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With this contract, Avalanche is expected to host multiple tokenized RWA products, joining Ethereum and Stellar. Securitize is also planning another fund, following ParaFi Capital’s recent choice of Avalanche to tokenize a minority stake in its $1.2 billion fund. ParaFi aims to actively use blockchain technology for its products, seeking efficiency and reduced costs through tokenization.

Despite the positive sentiment towards tokenized securities, with Citi Bank predicting a $5 trillion market by 2030, former Binance CEO Changpeng Zhao raised concerns about their lower volatility compared to cryptocurrencies, suggesting this could affect trading volume and investor interest.