Seeing BlackRock's BUIDL fund soar to $1.7 billion in March, it is estimated that it will soon surpass $2 billion, with the vast majority currently occurring on Ethereum and its L2 chain (other chains include Avalanche, aptos, Solana, etc.). So what exactly is this BUIDL fund? The full name of BUIDL Fund is BlackRock USD Institutional Digital Liquidity Fund. BlackRock is currently the world's largest asset management company in terms of managed assets, and it definitely has its considerations when it comes to this fund. In summary, BUIDL Fund is a tokenized money market fund. How to understand this concept? Firstly, it is a fund that invests in assets with lower risk and higher liquidity, such as US bonds, US dollars, repurchase agreements, etc; Secondly, it does not stop here, it is a tokenized fund. How to understand the tokenization of BUIDL Fund? Its tokenization means that traditional financial assets invested in, such as US dollars, US bonds, repurchase agreements, etc., are put on chains like Ethereum and converted into a token. This RWA process is in collaboration with a company called securitize, which specializes in RWA. The goal of this fund token is to maintain a stable value of $1 per token and provide investors with dollar based returns. Currently, only institutional investors are eligible to participate in the BUIDL fund, with a minimum threshold of $5 million and underlying assets managed by Bank of New York Mellon. For example, if an institution invests $10 million in BlackRock's BUIDL fund, the institution will initially receive $10 million in BUIDL fund tokens. BUIDL Fund invests in specific low-risk, high liquidity assets with dollars invested from other institutional investors, and these assets generate returns. The fund accumulates returns every day, which are then converted into tokens. An increase in revenue generates new tokens (with a token value anchored at $1). The new token will be directly sent to the wallets of participating institutional investors in the form of tokens every month. So, the difference between BUIDL and traditional financial market funds here is that BUIDL supports 24/7 subscription/redemption through on chain contracts and the Securitize platform (which can be settled in US dollars or USDC). BUIDL token holders can receive instant settlement and liquidity. BUIDL token holders (institutional investors) can not only receive token returns every month, but also sell their BUIDL fund tokens at any time to complete the exit. From this case, it can be seen that there is a trend towards upgrading traditional finance to encrypted finance. Due to its advantages in settlement and liquidity, this upgrade is almost inevitable, but it is only a matter of time. As a leading asset management company, BlackRock's exemplary role will be enormous; Secondly, in the process of upgrading traditional finance to encrypted finance, Ethereum and its ecosystem have the opportunity to play an important role. Due to the comprehensive advantages and dominant market position of Ethereum and its L2 ecosystem in terms of security, decentralization, trustlessness, and scalability, it is almost difficult to find alternative public chain ecosystems for carrying billions or trillions of dollars in the future.