Since its launch in March 2024, BlackRock’s tokenized money market fund BUIDL has paid out approximately $100 million in dividends, as reported by Securitize, the transfer agent and administrator for the product.
Investing in short-dated U.S. Treasuries, repurchase agreements, and cash equivalents, the fund has surpassed a value of $2 billion, positioning it among the largest tokenized cash products available.
Unlike stablecoins, BUIDL operates as a regulated money market-style entity, with shares represented by tokens that settle on public blockchains. Initially launched on Ethereum, it has expanded across various networks due to increasing demand for on-chain dollar yield products.
The $100 million in distributions from BlackRock’s BUIDL fund exemplifies how blockchain-based finance can operate at an institutional scale. This milestone arrives as tokenized money market funds are becoming an attractive regulated alternative to stablecoins for institutions seeking yield-bearing dollar exposure.
This category has rapidly expanded over the last year, although regulators and policymakers have raised concerns regarding settlement finality, liquidity assumptions, and the behavior of tokenized securities during stress events.
BUIDL is structured to enable qualified institutional investors to hold fund shares as blockchain tokens, with yield generated from the underlying portfolio and distributed to investors on-chain.
Beyond passive yield, the BUIDL tokens have been used within the crypto market infrastructure, including as collateral backing stablecoins like Ethena’s USDtb and in trading and financing arrangements.
This strategic positioning places BUIDL at the convergence of traditional short-term rate markets and the increasing efforts to transition collateral, settlement, and yield strategies onto on-chain platforms.
