Question 1

What is BlackRock USD Institutional Digital Liquidity Fund (BUIDL)?

Accepted Answer

BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is a tokenised money market fund launched by BlackRock. It is structured as an ERC-20 security token on Ethereum and other supported blockchains, and represents shares in the BlackRock USD Institutional Digital Liquidity Fund Ltd., a fund incorporated in the British Virgin Islands.

The fund seeks to provide current income consistent with liquidity and capital stability. It does this by investing primarily in short-term US Treasury instruments, including Treasury bills, notes, and other obligations issued or guaranteed by the US government, as well as repurchase agreements collateralised by such assets or cash. The token’s value is designed to remain stable at $1.00 USD.

BUIDL is offered to qualified institutional investors, with a minimum subscription amount of $5 million USD. The fund is fully tokenised using infrastructure provided by Securitize, which manages the compliance layer (including KYC/AML checks), issuance, and transfer restrictions. Tokens can only be held and transferred by whitelisted blockchain addresses that have passed the relevant verification procedures.

The asset management is conducted by BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc. Custody and fund administration are provided by Bank of New York Mellon. PricewaterhouseCoopers LLP serves as the fund’s auditor.

Question 2

What is BlackRock USD Institutional Digital Liquidity Fund (BUIDL) used for?

Accepted Answer

BUIDL allows qualified investors to access regulated US dollar-denominated yield directly on-chain. It serves multiple institutional use cases including:

- Digital treasury management
- On-chain collateral for trading or lending
- Backing reserves for stablecoins
- Integration with decentralised finance (DeFi) protocols

The token facilitates peer-to-peer transfers 24/7, subject to whitelist restrictions, and allows daily subscriptions and redemptions. Dividends are calculated daily and distributed monthly through a rebase mechanism, which automatically adjusts token balances to reflect accrued yield.

Redemptions can also be executed via Circle in USDC, providing near-instant liquidity. This enables interoperability with broader digital finance infrastructure while maintaining exposure to low-risk, short-duration government debt instruments.

To support these applications across various blockchain environments, BUIDL is deployed not only on Ethereum but also on Aptos, Arbitrum, Avalanche, Optimism, Polygon, and Solana. Cross-chain interoperability is facilitated by the Wormhole protocol.

Question 3

Who created BlackRock USD Institutional Digital Liquidity Fund (BUIDL)?

Accepted Answer

BUIDL was created by BlackRock, with the fund legally represented by BlackRock USD Institutional Digital Liquidity Fund Ltd. The initiative was developed in partnership with Securitize, which provides the tokenisation infrastructure and compliance management.

BlackRock Financial Management, Inc. acts as the investment manager for the fund. The Bank of New York Mellon serves as both the fund administrator and asset custodian. Auditing is conducted by PricewaterhouseCoopers LLP.

The fund also integrates with infrastructure providers such as Coinbase, Anchorage Digital, Fireblocks, and BitGo, which support custody and operational access for institutional participants. Joseph Chalom, Head of Strategic Ecosystem Partnerships at BlackRock, sits on Securitize’s board, and Robert Mitchnick, Head of Digital Assets at BlackRock, played a leading role in the product’s development.

BlackRock USD Institutional Digital Liquidity Fund

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