BlackRock’s tokenized cash market fund BUIDL has distributed about $100 million in dividends since launching in March 2024, in response to tokenization agency Securitize, which serves because the product’s switch agent and administrator.
The fund, which invests in short-dated U.S. Treasuries, repurchase agreements and money equivalents, has grown previous $2 billion in worth, making it one of many largest tokenized money merchandise available in the market.
Not like stablecoins, BUIDL is structured as a regulated cash market-style automobile whose shares are represented by tokens that choose public blockchains. BUIDL initially launched on Ethereum, however has expanded throughout a number of networks as demand for onchain greenback yield merchandise grows.
The $100 million in payouts from BlackRock’s BUIDL fund serves as proof of blockchain-based finance delivering at institutional scale. The milestone comes as tokenized cash market funds acquire traction as a regulated various to stablecoins for establishments in search of yield-bearing greenback publicity.
The class has grown shortly over the previous yr, although regulators and policymakers have flagged dangers round settlement finality, liquidity assumptions and the way tokenized securities behave throughout stress occasions.
BUIDL’s construction permits certified institutional buyers to carry fund shares as blockchain tokens, with yield accruing from the underlying portfolio and paid out to buyers onchain.
The product has additionally discovered use past passive yield. BUIDL tokens have been built-in into crypto market plumbing, together with as backing for stablecoins reminiscent of Ethena’s USDtb and as collateral in buying and selling and financing preparations.
That positioning has helped BUIDL sit on the intersection of conventional short-term charges markets and the rising push to maneuver collateral, settlement and yield methods onchain.
