BlackRock Launches New BUIDL Share Classes Across Multiple Blockchains to Expand Access and Potential of BUIDL Ecosystem

NEW YORK and MIAMI, Nov. 13, 2024 /PRNewswire/ -- BlackRock today announces that the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), which is tokenized by Securitize and was initially launched on the Ethereum network in March 2024, will now be expanding access across blockchain ecosystems through the launch of new share classes on Aptos, Arbitrum, Avalanche, Optimism's OP Mainnet, and Polygon.

This initiative represents the next step in the evolution of the tokenization market, by enabling BUIDL to be used within leading blockchain-based financial products and infrastructure across ecosystems. Each new blockchain enables the ecosystem of applications and users to natively interact with BUIDL, which can achieve on-chain yield with flexible custody, near real-time 24/7/365 peer-to-peer transfers, and on-chain dividend accrual and distribution.

BUIDL became the largest tokenized fund in AUM in the world in less than 40 days and is enabling utility for BUIDL investors through access to new ecosystems. This expansion offers optionality and increased access for investors, decentralized autonomous organizations (DAOs) and other digital asset-native firms by allowing developers to build on the BlackRock fund in their preferred ecosystem.

"We wanted to develop an ecosystem that was thoughtfully designed to be digital and take advantage of the advantages of tokenization," said Securitize CEO and co-founder Carlos Domingo.  "Real-world asset tokenization is scaling, and we're excited to have these blockchains added to increase the potential of the BUIDL ecosystem. With these new chains we'll start to see more investors looking to leverage the underlying technology to increase efficiencies on all the things that until now have been hard to do."

BNY, continuing to bridge traditional and digital financial ecosystems, enabled the fund to go live on these additional blockchains as the fund administrator and custodian for BUIDL. 

Aptos Network:
Aptos is a next-generation Layer 1 blockchain.  Aptos' breakthrough technology and programming language, Move, are designed to evolve, improve performance and strengthen user safeguards.

Management Fee: 20 bps
Token Address: 0x4de5876d8a8e2be7af6af9f3ca94d9e4fafb24b5f4a5848078d8eb08f08e808a

Arbitrum:
Arbitrum, launched in August 2021, is a leading Ethereum Layer 2 scaling solution offering ultra-fast, low-cost transactions through Optimistic Rollup technology. With 54%+ TVL and 2000+ DeFi and NFT projects, it remains a key player. In August 2022, it upgraded to the Nitro tech stack for enhanced performance. The Arbitrum Foundation, founded in March 2023, supports this growth with secure scaling solutions.

Management Fee: 50 bps
Token Address: 0xA6525Ae43eDCd03dC08E775774dCAbd3bb925872

Avalanche:
Avalanche is a high-performance L1 blockchain network built for scaling. The network's mix of EVM compatibility, interoperability, speed, low fees, and customizability has attracted an ecosystem of high-quality tokenized assets, as well as broader institutional adoption.

Management Fee: 20 bps
Token Address: 0x53FC82f14F009009b440a706e31c9021E1196A2F

Ethereum:
Ethereum is the largest smart contract blockchain by market capitalization. BUIDL was originally launched on Ethereum.

Management Fee: 50 bps
Token Address: 0x7712c34205737192402172409a8F7ccef8aA2AEc

Optimism:
Optimism is building the Superchain, a unified network of blockchains built on a standard codebase that share security, governance, and values. The Superchain is home to L2s from Coinbase, Uniswap, Sony, Kraken, World, and more. Together, OP Chains in the Superchain Ecosystem are working to grow Ethereum to an internet-level scale.

Management Fee: 50 bps
Token Address: 0xa1CDAb15bBA75a80dF4089CaFbA013e376957cF5

Polygon PoS:
Polygon PoS is a stable, widely adopted EVM compatible blockchain protocol for scaling Ethereum that is user and developer friendly. With deep-liquidity and bleeding-edge features like account abstraction and parallelized execution, Polygon PoS boasts millions of daily active users and numerous popular dApps. When it connects to the AggLayer, pending community consensus, it will be the gateway for network effects and a robust, aggregated future. Past, present, and future proof.

Management Fee: 20 bps
Token Address: 0x2893Ef551B6dD69F661Ac00F11D93E5Dc5Dc0e99

Aptos Foundation, Avalanche (BVI), Inc. and Polygon Labs BD Investments (Cayman) Ltd. each have agreed to pay BlackRock a quarterly fee generally based on the average value of the relevant class of shares for such quarter.

About BlackRock
BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading financial technology provider, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate

BlackRock Financial Management, Inc. (the "Investment Manager"), a Delaware corporation that is an indirectly wholly-owned subsidiary of BlackRock, Inc., is the investment manager of BUIDL and is responsible for its investment activities subject to the policies, control and supervision of the board of directors of BUIDL.  The Investment Manager is registered with the U.S. Securities and Exchange Commission as an investment adviser under the U.S. Investment Advisers Act of 1940, as amended.

Contact: [email protected]

About Securitize
Securitize, the leader in tokenizing real-world assets, is bringing the world on-chain through tokenized funds in partnership with top-tier asset managers, such as BlackRock, Hamilton Lane, KKR and others. Securitize, through its subsidiaries, is a SEC-registered broker dealer and digital transfer agent, and operator of a SEC-regulated Alternative Trading System (ATS).   For more information, please visit www.securitize.io  

Securities are offered through Securitize Markets, LLC ("Securitize Markets"), a registered broker-dealer and member FINRA/SIPC. Securitize Markets, LLC, and Securitize Capital, an Exempt Reporting Adviser, are not involved in Real-World Asset (RWA) tokenization, a service provided by Securitize. Neither Securitize Markets, nor any of its affiliates provide any investment advice or make any investment recommendations to any persons, ever, and no communication through herein or in any other medium should be construed as such. Securities offered by Securitize Markets have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

Securitize, Inc. (Securitize) is a Delaware corporation. Securitize is a technology provider which, together with its affiliates, maintains an end-to-end web-based platform used by issuers for issuing securities, specifically including digital asset securities. Securitize is not a registered broker-dealer.
Securitize, LLC is a transfer agent registered with the U.S. Securities and Exchange Commission.
Securitize Markets also operates Securitize Markets ATS, an alternative trading system.
Securitize Capital, LLC is an exempt reporting adviser filed with the State of Florida.

Contact: [email protected]

Disclosures

BUIDL's initial investment minimum is $5 million.  Interests in BUIDL have not been registered with the Securities and Exchange Commission and will not be listed on any exchange.  Such interests are offered solely pursuant to 506(c) under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.  BUIDL is excepted from the definition of "investment company" under the Investment Company Act pursuant to Section 3(c)(7) of that Act.

Private market investments are speculative and considered risky, including potential loss of your investment, and may not be appropriate for every shareholder. Any discussion of liquidity is purely speculative. Past performance is not indicative of future results.

BUIDL may not be able to maintain a stable value of $1.00 per token at all times.  Investments in tokens using blockchain, such as an investment in BUIDL, involve a high degree of risk, including risks that are different from the risks of investing in traditional assets. These risks include, but are not limited to, risk of regulatory uncertainty, market adoption, market manipulation, market exiting, price volatility and security risk and may expose investors to loss of principal. Investments in private placements are also speculative and involve a high degree of risk. Investors must be able to afford the loss of their entire investment. Offers to sell, or the solicitations of offers to buy any security can only be made to qualified investors through official offering documents that contain important information about risks, fees and expenses associated with the applicable securities. Investors should conduct their own due diligence and are encouraged to consult with a financial advisor, attorney, accountant, tax advisors, and any other professional that can help them to understand and assess the risks associated with any investment opportunity. Past performance is not indicative of future results.

In connection with its services as placement agent for BUIDL, the Investment Manager will pay to Securitize Markets cash compensation as follows: (i) an upfront flat fee and (ii) a quarterly fee with respect to each investor who is introduced to BUIDL by Securitize Markets generally equal to a percentage of the average daily net asset value of such investor's interests in BUIDL for the applicable calendar quarter, with the amount of the upfront fee to be credited against the quarterly fee.

The compensation paid by the Investment Manager to Securitize Markets for acting as placement agent to BUIDL creates a conflict of interest for Securitize Markets.  In particular, the amount of compensation received by Securitize Markets will depend on the number of investors that are introduced to BUIDL.  As a result, Securitize Markets is incentivized to recommend that prospective investors invest in BUIDL.  In addition, BlackRock's investment in Securitize Markets creates a conflict of interest for the Investment Manager.

BlackRock has also made a strategic investment in Securitize.  As part of the investment, Joseph Chalom, BlackRock's Global Head of Strategic Ecosystem Partnerships, has been appointed to Securitize's Board of Directors.

Securitize Markets or one or more of its affiliates may be a BlackRock client or investor.

SOURCE Securitize