BlackRock’s BUIDL wants to switch to USDC in the middle of the night—does it no longer have to wait for the U.S. stock market to open?
On November 12, Securitize launched a liquidity channel for BUIDL, BlackRock’s tokenized Treasury fund, backed by Ethena and operated by Securitize. The official wording: eligible BUIDL holders can access up to $100 million in liquidity, 24/7, within one hour.
A few hard numbers:
1. Capacity: $100 million in total. According to The Block, the initial $50 million is split evenly between BUIDL and USDC; once it’s used up, the remaining $50 million will be replenished within one hour.
2. Compared with the fund’s size: The Block puts BUIDL at around $2.4 billion, so the $100 million channel is about 4% of the fund. If everyone tries to use it at once, the channel can’t handle all of them.
3. How it works: Strictly speaking, this isn’t a “redemption” from the fund. It’s an exchange between BUIDL and supported stablecoins, including USDC, with someone on the other side taking the trade.
4. Eligibility: It’s only available to “qualified investors”; ordinary retail investors can’t use it.
A practical rule of thumb: Whenever you see a tokenized Treasury product advertised as “redeemable anytime,” ask three questions: Who’s on the other side of the trade—the fund itself or a third-party liquidity pool? What are the per-transaction and overall limits? Once the capacity is used up, how long will replenishment take, and what happens if it can’t be replenished? If those three questions don’t have clear answers, “anytime” is just a marketing phrase.
Follow me for a plain-English explanation each day of how Wall Street’s money is moving on-chain.
On November 12, Securitize launched a liquidity channel for BUIDL, BlackRock’s tokenized Treasury fund, backed by Ethena and operated by Securitize. The official wording: eligible BUIDL holders can access up to $100 million in liquidity, 24/7, within one hour.
A few hard numbers:
1. Capacity: $100 million in total. According to The Block, the initial $50 million is split evenly between BUIDL and USDC; once it’s used up, the remaining $50 million will be replenished within one hour.
2. Compared with the fund’s size: The Block puts BUIDL at around $2.4 billion, so the $100 million channel is about 4% of the fund. If everyone tries to use it at once, the channel can’t handle all of them.
3. How it works: Strictly speaking, this isn’t a “redemption” from the fund. It’s an exchange between BUIDL and supported stablecoins, including USDC, with someone on the other side taking the trade.
4. Eligibility: It’s only available to “qualified investors”; ordinary retail investors can’t use it.
A practical rule of thumb: Whenever you see a tokenized Treasury product advertised as “redeemable anytime,” ask three questions: Who’s on the other side of the trade—the fund itself or a third-party liquidity pool? What are the per-transaction and overall limits? Once the capacity is used up, how long will replenishment take, and what happens if it can’t be replenished? If those three questions don’t have clear answers, “anytime” is just a marketing phrase.
Follow me for a plain-English explanation each day of how Wall Street’s money is moving on-chain.
