BUIDL in the context of BlackRock stands for BlackRock USD Institutional Digital Liquidity Fund. It is the first blockchain-based money market fund deployed on the Base Blockchain.
BlackRock is the largest asset manager in the world with over $10 trillion in assets.
Not to be confused with the term used for blockchain development: BUIDL
What is BUIDL?
BUIDL is a tokenized money market fund launched on the Ethereum ecosystem. It is a Real World Asset project. It is also available on the Base blockchain.
How Does It Work?
It means that the project will pool money via selling tokens and use this amount to provide liquidity wherever required like exchanges, market makers, and other areas. The returns generated with this liquidity supply business will be distributed as tokens to the investors in this project (i.e., to BUIDL token buyers).
The BUIDL Token
BlackRock has launched a BUIDL token along with the BUIDL project. Its value is pegged to the US Dollar but offers a return on investments too.
This token does two things.
- One, buying it helps you invest in the money market fund. The more this fund is utilized, the more will be your returns.
- Second, the BUIDL token could be used as collateral for crypto exchanges for their leveraged future and options trading.
What Are Money Market Funds?
Money market funds are those funds that pool investor money together and lend them via various assets like collateralized loans, short-term call money, etc., to generate returns.
Frequently Asked Questions
Can I invest in BUIDL?
BUIDL has a very high threshold for allowing investments. The minimum investment amount is $5 million. The fund was created for institutional investors and not retail markets.
