BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), the largest on-chain tokenized treasury fund, has integrated oracle provider Chronicle's Proof of Asset (PoA) system as a novel verification layer. Announced on Tuesday, this partnership aims to provide continuous, independent attestation of the fund's underlying U.S. Treasury securities, overnight repurchase agreements, and cash holdings.
The Chronicle Proof of Asset system will deliver "independently verified holdings-level data" that continuously attests to the availability, freshness, and integrity of the fund's asset composition. This data is viewable on a dedicated Chronicle dashboard. Carlos Domingo, CEO of BUIDL issuer Securitize, stated, "Tokenization becomes meaningful when investors and protocols can independently verify what’s actually backing the product." He added that Chronicle's support shows how tokenized funds are evolving into "fully transparent, data-driven financial instruments built for institutional use and global markets."
Chronicle's PoA is an institutional-grade oracle layer that sources data directly from custodians and administrators. Niklas Kunkel, founder of Chronicle, described it as an "integrity layer" providing "more granular and transparent data" for institutions like asset managers and risk teams. The system offers insight into the fund's underlying assets and independent attestations on the "valuation, composition, custody, and existence of the assets backing BUIDL."
Robert Mitchnik, BlackRock's head of digital assets, emphasized that the system provides "platforms and allocators greater visibility in how tokenized assets are evaluated and used." Kunkel noted that this "depth of verification is what institutions require and what the market has been missing," setting a new standard for transparency in tokenized finance.
The BUIDL fund is the largest of its kind, with approximately $1.7 billion in assets under management. Chronicle's Proof of Asset system currently manages about $5 billion in "total value secured" for other major funds, including the Janus Henderson Anemoy Treasury Fund (JTRSY) and Superstate’s Short Duration US Government Securities Fund (USTB). Securitize has also tapped the system for its own Tokenized AAA CLO Fund (STAC).
This move is part of a broader industry trend of bringing valuable off-chain data on-chain. It follows recent announcements like Coinbase pushing its trading data on-chain via Chainlink's DataLink. Kunkel differentiated Chronicle's offering from providers like RedStone (previously named as Securitize's primary data provider), stating, "Proof of Asset goes beyond simply relaying price or NAV data onchain... This is entirely new infrastructure; we're building a layer that didn't exist until now."
