BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has surpassed $900 million in assets on the Avalanche network, rocketing from roughly $464 million within a single week. The 105% weekly increase, flagged by RWA.xyz on July 12, pushed BUIDL’s total value across all networks to approximately $2.87 billion, with Avalanche now representing nearly a third of that sum — making it the fund’s second‑largest allocation after Ethereum.
Launched in March 2024 via tokenization platform Securitize, BUIDL primarily invests in U.S. Treasury bills, cash, and repurchase agreements, offering qualified investors tokenized shares that yield daily dividends. The fund first appeared on Ethereum, then expanded to Aptos, Arbitrum, Avalanche, Optimism, Polygon, Solana, and BNB Chain. BNY Mellon supports administration across digital and traditional rails. Current RWA.xyz data shows a seven‑day annualized yield of 3.40% and management fees between 0.20% and 0.50%, though these can shift with rate changes. Despite its $2.87 billion size, BUIDL counted only 113 holders at the time of the report, underscoring its focus on institutional rather than retail access.
Meanwhile, Avalanche’s tokenized real‑world asset (RWA) ecosystem received an even bigger jolt from Bridgetower, which announced on July 13 that it had tokenized more than $11 billion in production‑linked assets on the network using Chainlink infrastructure. The portfolio, which includes the Arizona Copper‑Gold project, vaulted Avalanche into the top five blockchain networks for net RWA inflows on RWA.xyz. Overall distributed tokenized asset value on Avalanche reached $2.1 billion — a 60% jump in 30 days — with BUIDL alone accounting for roughly 43% of that figure.
Institutional momentum extends beyond BlackRock and Bridgetower. VanEck has revealed plans for a gaming, DeFi, AI, and RWA portfolio on Avalanche, while unused capital will be placed in tokenized money market instruments on the network. Franklin Templeton’s BENJI fund and Littio Bank selected Avalanche for yield products, and the Avalanche Foundation continues its $50 million RWA initiative. Ava Labs VP Morgan Krupetsky commented that the network now ranks among the top five for tokenized assets by both distributed and represented value, calling it “still just the beginning.”
The surge in tokenized assets boosts on‑chain activity because AVAX is required for transaction fees, staking, and subnet deployment, linking institutional growth directly to network usage. However, Ethereum still dominates with roughly $16 billion in tokenized RWAs, and competing layer‑2 solutions are actively pursuing similar institutional deals, ensuring that Avalanche’s gains remain part of a fast‑evolving and highly competitive landscape.
