Polygon and other blockchains now have expanded access to BlackRock's tokenized money market fund.

BlackRock has expanded its tokenized money market fund to include several more blockchains.

The USD Institutional Digital Liquidity Fund (BUIDL) is now accessible to investors on Aptos, Arbitrum, Avalanche, OP Mainnet (formerly Optimism), and Polygon blockchains, following its initial launch on Ethereum in March.

The BUIDL fund, launched by BlackRock two months after the iShares Bitcoin Trust ETF, allows investors to earn U.S. dollar yields through a blockchain-based vehicle. The concept of tokenizing "real-world assets" like gold, a crucial component of decentralized finance (DeFi), has gained traction among financial institutions that are hesitant about crypto assets but intrigued by the underlying blockchain technology.

Robert Mitchnick, BlackRock's head of digital assets, stated in March that there is irony in the fact that we took a crypto native investment exposure with iShares Bitcoin Trust and put it in a traditional finance wrapper, while with tokenization, we are taking traditional finance investment exposure and putting it in a crypto native wrapper.

"He stated that the dichotomy would continue for a while, but eventually, there would be convergence, resulting in a next-generation infrastructure that combines the best of the old system and the new technology."

After a week-long rally in cryptocurrencies, which saw a 28% increase, according to Coin Metrics, the announcement was made following Donald Trump's victory in the U.S. presidential election. During his campaign, Trump had promised more supportive regulations for crypto projects and businesses, a shift from the Biden administration's policy of regulating the industry through enforcement actions, which had hindered growth.

The DeFi sector, which is highly popular among crypto market participants, has faced regulatory uncertainty, as some DeFi tokens have been classified as securities in SEC lawsuits against Binance and Coinbase.