This migration was little publicized by Ethena, and it has not explained the reasons.
BUIDL offers dollar yield to qualified investors.
The world’s largest asset manager, BlackRock, has seen $1.5 billion of its tokenized BlackRock USD Institutional Digital Liquidity Fund (BUIDL) withdrawn from the Ethereum network.
This massive migration was executed by Ethena Labs, the entity that uses the fund as collateral for its USDtb stablecoin to the Aptos, Avalanche and Polygon networks.
Each of these networks received an assignment of 500 million dollars from BUIDL. This action reduced the supply of BUIDL on Ethereum from approximately 2,490 million to 991 million dollars, reported Tom Wan, Chief Data Officer at Entropy Advisors.
Although the migration of the tokenized assets has been completed, these tokens will continue to serve as collateral for USDtb, a digital asset backed 100% by BUIDL. The move of 82% of USDtb’s collateral from Ethereum to other platforms is notable, although the fund’s actual backing remains in off-network assets.
BUIDL was launched in 2024 on Ethereum and has been instrumental to BlackRock’s foray into tokenization of real-world assets (RWA, for its acronym in English), as reported by CriptoNoticias.
This fund operates by investing in short-term US Treasury securities, offering dollar yields to qualified investors and allowing instant trading without the need for clearing houses.