A quiet flow of capital is reshaping the institutional crypto landscape, and this time the spotlight is not on Ethereum. BlackRock’s tokenized money market fund, BUIDL, has surpassed $900 million on the Avalanche network - surging after absorbing $436 million in just one week.
Following that surge, Avalanche now accounts for nearly a third of the entire BUIDL fund, which totals $2.87 billion. Avalanche has officially become the second-largest network hosting BUIDL, just behind Ethereum. Notably, all of this growth occurred while maintaining the token’s target value, which remains pegged at $1 per share.
What Exactly Is BUIDL
BlackRock launched BUIDL in March 2024 via the tokenization platform Securitize. Rather than speculative tokens, its holdings consist of short-term U.S. Treasury bills, cash, and repurchase agreements. The objective is straightforward: to generate ongoing yield while preserving liquidity and principal stability. Investors receive fund shares in the form of tokens alongside daily accrued dividends.
BUIDL initially launched exclusively on Ethereum before expanding to Aptos, Arbitrum, Avalanche, Optimism, and Polygon in late 2024, followed by Solana and BNB Chain. On Avalanche, the fund has also entered the DeFi ecosystem via sBUIDL - a token backed 1:1 by BUIDL - which can be used as loan collateral on the Euler platform.
Just 113 Holders, Worth Billions of Dollars
Perhaps the most striking detail: according to data from RWA.xyz, the massive fund approaching $2.87 billion is held by only around 113 owners. This structure underscores that BUIDL is tailored for high-net-worth qualified purchasers rather than retail investors. Consequently, the $436 million surge on Avalanche this week likely originated from one or a handful of large allocations rather than an influx of new investors.
Neither BlackRock nor Securitize has disclosed the identity behind the sudden capital injection. The data only confirms the asset increase, without revealing whether the capital came from new subscriptions or cross-chain transfers.
Why This Matters
The race for tokenized real-world assets (RWA) is heating up, with heavyweights like BlackRock, Franklin Templeton, and other asset managers competing to deploy products on the most liquid chains. When institutional capital of this scale quietly chooses Avalanche as its second home, it signals that blockchain competition is no longer just about retail activity - it is about who is most trusted to hold serious money. For crypto holders, RWA inflows like these are gradually bridging the crypto ecosystem with traditional finance.
Sourced from crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
