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The success of BlackRock's tokenized fund

source-logo  en.cryptonomist.ch 10 July 2024 14:56, UTC

The world of investments has witnessed a significant shift with the rise of tokenized funds. BlackRock, the largest asset manager in the world, has recently reached an important milestone with its tokenized fund, the BlackRock USD Institutional Digital Liquidity (BUILD). According to data provided by Etherscan, BUILD held approximately 502.8 million dollars in assets under management as of Tuesday, surpassing the 500 million dollar market value threshold. This success has led BUILD to become the largest blockchain-based tokenized fund by market value, surpassing Franklin Templeton’s FOBXX fund.


What is a tokenized fund and the success of Blackrock

A tokenized fund is a traditional investment fund that uses blockchain technology to issue digital tokens representing the shares of the fund. This innovation allows for greater transparency, faster transactions, and reduced operational costs compared to traditional funds. The tokens can be traded among investors in a manner similar to how cryptocurrencies are traded, while still maintaining the structure and security of traditional investments.

The BlackRock USD Institutional Digital Liquidity (BUILD) has been designed to provide liquidity to institutional investors. The fund invests in high-quality short-term securities, maintaining low volatility and minimal risk. The choice to tokenize the fund has allowed BlackRock to leverage the advantages of blockchain, offering investors greater transparency and traceability of transactions.

The surpassing of 500 million dollars in market value is a significant milestone that demonstrates the growing confidence of investors in tokenized funds and blockchain technology. This result was made possible thanks to BlackRock’s robust investment management strategy and their ability to attract institutional capital.

Before the success of BUILD, Franklin Templeton’s FOBXX fund held the title of the largest blockchain-based tokenized fund by market value. Franklin Templeton was one of the first financial institutions to explore the use of blockchain technology in investment funds, earning a leadership position in the sector. However, the rapid adoption and efficient execution by BlackRock allowed BUILD to surpass FOBXX, demonstrating the competitiveness in the tokenized fund market.

The role of Etherscan

Etherscan, one of the main exploration platforms of the Ethereum blockchain, has played a crucial role in monitoring and verifying data related to the BUILD fund. The platform provides transparency on token movements and transactions, allowing investors and observers to monitor in real-time the value of the assets held by the fund. The transparency offered by Etherscan is one of the reasons why tokenized funds are gaining popularity among investors.

The success of BlackRock’s BUILD fund marks an important step forward in the adoption of blockchain technology in the investment sector. This milestone could stimulate further innovations and the adoption of tokenized funds by other financial institutions. The ability to offer greater transparency, reduce costs, and improve operational efficiency makes tokenized funds an attractive option for institutional investors.

Furthermore, the success of BUILD could lead to greater regulation and standardization in the tokenized funds sector. With the increase in investor participation, regulatory authorities could be driven to develop clearer and safer guidelines to ensure security as well as investor protection.


The surpassing of 500 million dollars in market value by BlackRock’s tokenized fund BUILD represents a significant milestone in the world of investments. This success demonstrates the growing confidence of investors in tokenized funds and blockchain technology. The competition with Franklin Templeton’s FOBXX fund highlights the dynamism of the market and the ability of large financial institutions to adapt and innovate.

With the continuous evolution of the sector, tokenized funds could become a fundamental component of the investment landscape, offering new levels of transparency, efficiency, and accessibility. The future of investment funds like BUILD could be increasingly digital and especially based on blockchain. The success of BlackRock with BUILD is a promising sign of what the future might hold.