What is BlackRock USD Institutional Digital Liquidity Fund?

The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is a tokenized money market fund designed to enable institutional investors to earn yields on U.S. Treasury securities through blockchain technology.

Launched on March 20, 2024, by BlackRock—the world's largest asset manager—BUIDL represents fractional ownership in a portfolio of high-quality, short-term debt instruments, primarily U.S. Treasuries and repurchase agreements, ensuring principal stability and liquidity while delivering dollar-denominated returns. Domiciled in the British Virgin Islands and regulated under the U.S. Securities Act Reg. D exemption for qualified purchasers, the fund maintains a stable net asset value (NAV) of $1.00 per token and distributes income monthly to holders.

BUIDL is exclusively tokenized and managed on the Securitize platform, a leading digital securities infrastructure provider that handles issuance, transfer agency, and paying agent services. Securitize's role extends to powering the fund's blockchain integration, including cross-chain transfers via Wormhole, which enhances interoperability and security for institutional-grade assets.

Core features:

• Institutional Focus: Tailored for U.S. qualified purchasers, corporations, and high-net-worth entities, with a minimum investment of $5 million USDC and a $250,000 USDC minimum redemption threshold.

• Yield and Backed: The fund targets current income consistent with liquidity. Backed by U.S. Treasury debt, it offers low-risk exposure to short-term securities

• Multi-Chain Accessibility: Available across major blockchains and supports seamless transfers and broad utility in DeFi protocols.

• Collateral and Utility: BUIDL tokens are accepted as collateral for trading on platforms like Binance, unlocking lending, borrowing, and margin capabilities in crypto markets.