BUIDL – a tokenized blockchain-based investment fund created by BlackRock – has expanded its functionality and interoperability, adding Solana to the list of supported blockchain networks.
The BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the largest blockchain-based money market fund with over $1 billion in assets under management, has expanded to the Solana blockchain.
Debuting on the Ethereum blockchain in March 2024, BlackRock’s tokenized fund has since extended its reach to multiple blockchain networks, including Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon, to enhance accessibility and interoperability within the decentralised finance (DeFi) ecosystem.
BUIDL combines the reliability of traditional financial mechanisms with the efficiency of blockchain technology. As all other tokenized money market funds, BlackRock’s offering aims to preserve the principal investment rather than significantly multiply it at greater risk. It offers institutional investors a stable $1 value for their deposits by investing in short-term U.S. Treasury securities and repurchase agreements along with high liquidity. BUIDL pays accrued dividends to investors each month. As of August 2024, the fund holders collectively received $7 million in dividends. The fund also leverages smart contract functionality, enabling investors to transfer their shares to Circle, exchanging them for USDC.
The news was delivered by Carlos Domingo, the founder and CEO of the real-world asset (RWA) tokenization platform Securitize, BUIDL’s tokenization provider, which serves as the transfer agent and tokenisation platform for the fund, handling tokenized shares and managing fund subscriptions, redemptions, and distributions.
With its multi-blockchain interoperability and reputable institutional managers, BUIDL has quickly gained market traction. Earlier this March, Securitize announced that the fund surpassed $1 billion in assets under management, marking a significant milestone for on-chain finance and setting a new benchmark for the investment community.
By estimations of the RWA data platform rwa.xyz, BUIDL has recently reached a market capitalization of $1.7 billion, tripling from July 2024, and a nearly 34% market share among other Tokenized United States Treasurys. Other popular tokenized products include Hashnote, Franklin Templeton and Ondo USDY.
Although tokenized money market funds started exploring alternative blockchains, Ethereum currently remains the most popular choice for on-chain finance. The network holds over 70% of the tokenized securities. At the same time, Solana may now increase its market share for tokenized Treasurys. The blockchain, mostly known for its meme coin hosting, also offers several benefits compared to other networks. It surpasses Ethereum in transaction speed, has a simpler single-layer structure, and charges lower fees, making it more accessible.
