BlackRock Partners With Ethena to Boost Institutional BUIDL

BlackRock integrates Ethena stablecoins into its Aladdin platform to provide 24/7 liquidity for the $3 billion BUIDL fund and tokenized US Treasuries.

According to reports from The Block, the world’s largest asset manager is set to integrate broader support for Ethena network stablecoins into its Aladdin platform. Institutional investors utilize Aladdin for portfolio and risk management; this move aims to streamline access to tokenized U.S. Treasury bills and ensure faster liquidity outside of traditional financial market hours.

Bridging Traditional Finance and Blockchain

The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) sits at the heart of this new partnership. Ethena will support a $100 million liquidity facility through Securitize, which serves as the fund’s transfer agent.

This new infrastructure enables qualified institutional clients to exchange BUIDL fund tokens for stablecoins such as USDC and USDtb, and vice versa. These transactions can occur without the need to wait for standard financial market operating hours.

BlackRock views such interoperability as a critical component for the growth of tokenized financial products and their adoption among major institutional investors.

Aladdin Expands Stablecoin Support

The Aladdin platform will now feature deeper integration with Ethena’s stablecoins. This includes USDe—a synthetic digital dollar that generates yield—and USDtb, a reserve-backed stablecoin with reserves primarily invested in BlackRock’s BUIDL fund.

This integration allows investors to move capital between traditional financial instruments and tokenized assets with greater ease. A primary objective is to slash settlement times and provide 24/7 liquidity access.

BlackRock Strengthens Its Tokenized Asset Position

The partnership reinforces BlackRock’s dominant position in the Real-World Asset (RWA) tokenization sector. The BUIDL fund currently manages approximately $3 billion, ranking it among the largest products in the space.

Market analysts note that tokenized government bonds now account for roughly half of the global tokenized RWA market, which has surpassed $15 billion in total value.

Expanding the collaboration with Ethena signals that BlackRock remains committed to building infrastructure that connects traditional capital markets with blockchain technology. Rather than developing isolated crypto products, the firm is integrating existing solutions into the platforms institutional investors already use. This strategy could accelerate the adoption of tokenized financial instruments and broaden the role of stablecoins in the daily operations of major investment managers.