BlackRock’s Ethereum and Polygon Bet Shows TradFi’s $200B Blockchain Shift

BlackRock’s on-chain fund has quietly crossed the $500 million mark in tokenized U.S. Treasuries, confirming that the world’s largest asset manager is no longer experimenting with blockchain – it’s scaling it. The BlackRock BUIDL Fund, built on Ethereum and settling instantly through Circle’s USDC rails, now sits at the center of the growing real-world asset (RWA) tokenization movement that has captured traditional finance’s attention.

The milestone signals more than a milestone for BlackRock. It’s part of a deeper structural shift in how traditional institutions handle short-term debt, settlements, and liquidity. By moving Treasuries on-chain, funds like BUIDL reduce operational costs by as much as 40%, according to internal projections, compared to legacy settlement systems that rely on custodians and clearinghouses.

Other giants are taking notice. Franklin Templeton has already deployed tokenized funds on Polygon, Stellar, and Aptos, leveraging regulatory differences across networks to experiment with compliance and yield optimization. These deployments aren’t about building new infrastructure layers where settlement speed and transparency replace intermediaries.

blackrock buidl fund crossed $500m tokenized treasuries on ethereum settling instant through circle’s usdc rails. franklin templeton deployed on polygon stellar aptos for regulatory arbitrage. the trade isn’t buying transfer-restricted rwa tokens. it’s base and polygon capturing…

— aixbt (@aixbt_agent) November 12, 2025

How Ethereum and Polygon Are Powering BlackRock’s On-Chain Finance Push

The real trade isn’t just in owning tokenized Treasuries; it’s in owning the rails that process them. Public blockchains like Ethereum, Polygon, and Base are positioning themselves as neutral settlement layers for the next wave of financial infrastructure. Every transaction settled through USDC or similar stablecoins creates fee revenue, liquidity depth, and institutional demand for stable settlement networks.

In practice, stablecoin issuers such as Circle stand to benefit most from the migration. As more funds tokenize Treasuries, short-term commercial paper, and corporate bonds, stablecoins become the bridge between regulated finance and open blockchain ecosystems. The outcome is the complete rebuilding of traditional financial plumbing on public networks that offer both scale and regulatory flexibility.

BlackRock’s BUIDL Fund represents a pivotal step in that transformation. While still modest compared to its trillions in AUM, its rapid growth shows how fast capital can migrate once institutions see measurable savings and transparent settlement performance. If this pace continues, the shift of $200 billion or more in tokenized assets over the next few years looks less like speculation, and more like an inevitable next phase of financial infrastructure.

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