BlackRock USD Institutional Digital Liquidity Fund is a liquidity fund investing in high-credit-quality assets with ESG integration and capital stability focus. More
| Fully Diluted Valuation | $2.39B |
|---|---|
| 24H Trading Volume | $0 |
| 24H Low / High | $1.00 / $ 1.00 |
| Circulating Supply | 2.39 B |
| Total Supply | 2.39 B |
| Max Supply | ∞ |
| Categories | Real World Assets (RWA) 7 more |
|---|---|
| Founder | BlackRock Inc. |
| Website | blackrock.com |
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The BlackRock USD Institutional Digital Liquidity Fund $BUIDL is a financial product aiming to maximize income on investments while maintaining capital stability and ensuring assets remain liquid under normal market conditions. This fund primarily invests in a diverse range of high-credit-quality fixed-income securities and money market instruments (MMIs) with short-term maturities.
Additionally, the fund incorporates Environmental, Social, and Governance (ESG) criteria in its investment strategy, in alignment with regulatory frameworks, to address sustainability factors and promote environmentally and socially responsible practices.
Key highlights of the fund include:
Net Assets: USD 91,925,833,474.74 (as of 13-Mar-2025).
Fund Inception: 16-Dec-1998.
Fund Type: Low Volatility NAV.
Minimum Initial Investment: USD 500,000,000.
Ratings: Aaa-mf (Moody's), AAAmmf (Fitch), AAAm (S&P).
The fund employs advanced compliance systems, automated risk management tools, and proprietary ESG integration methodologies via BlackRock's Aladdin platform to ensure alignment with its objectives and ESG commitments.
Key Features
Investment Strategy
The BlackRock USD Institutional Digital Liquidity Fund $BUIDL is designed to generate current income and ensure liquidity while maintaining low volatility of principal. The portfolio includes:
Securities and Obligations: Investments in instruments issued or guaranteed by the U.S. government, sovereign governments, supranational entities, and corporate/commercial issuers.
Exclusionary Screens: Investments exclude companies involved in thermal coal, controversial weapons, nuclear weapons, civilian firearms, tobacco, and companies with inadequate ESG ratings.
ESG Integration
The fund incorporates ESG insights, applying BlackRock EMEA Baseline Screens to avoid investments with negative environmental or social impacts. Key ESG considerations include:
Avoiding exposure to fossil fuel sectors.
Excluding issuers violating UN Global Compact principles.
Ensuring investments align with ESG objectives monitored via advanced data analytics and methodologies.
Portfolio Characteristics
Weighted Average Maturity: 44 days.
7-Day Yield: 4.45% (net, as of 13-Mar-2025).
Sustainability Focus: 80% of the fund's assets support environmental or social characteristics.
Regulatory Framework
The fund is structured as a UCITS-compliant product under Irish regulatory jurisdiction, ensuring robust investor protections and adherence to sustainability-related disclosures under the SFDR Article 8 classification.
Use Cases
Corporate Treasuries: Organizations needing a secure, high-liquidity vehicle for cash management with ESG considerations.
Institutional Investors: Entities seeking exposure to high-quality fixed-income instruments while addressing sustainability risks.
Sustainable Investment Strategies: Investors prioritizing portfolios aligned with environmental and social objectives.
Founders, Backers, and Partners
The BlackRock USD Institutional Digital Liquidity Fund $BUIDL is managed by BlackRock Asset Management Ireland Limited, a subsidiary of BlackRock, a global leader in asset management. The fund employs BlackRock's proprietary systems, including the Aladdin platform, to ensure compliance, risk management, and ESG integration.
ESG Data Providers
The fund leverages insights from various third-party ESG data providers, such as:
MSCI
Sustainalytics
Refinitiv
S&P
Clarity AI
These partnerships ensure access to high-quality ESG datasets for informed investment decision-making.
Ratings and Benchmarks
The fund is rated highly by leading credit agencies and uses the Secured Overnight Financing Rate (SOFR) for benchmarking purposes. The absence of fossil gas and nuclear energy-related commitments underscores its sustainability-focused ethos.
Conclusion
The BlackRock USD Institutional Digital Liquidity Fund $BUIDL is an exemplary financial product that merges high credit-quality investments with ESG integration. By leveraging BlackRock's advanced compliance mechanisms, extensive partnerships, and sustainability-driven strategies, it stands as a robust option for institutional investors seeking liquidity, capital stability, and sustainable returns.
The fund integrates ESG criteria into investments and targets secure, high-liquidity assets with a low volatility approach.
The founders are anonymous.
The fund collaborates with ESG data providers like MSCI, Sustainalytics, Refinitiv, S&P, and Clarity AI.
