BlackRock Expands Tokenized Money Market Fund to Solana
BlackRock’s tokenized money market fund, BUIDL, has now been made available on Solana, according to an announcement by Securitize. This move marks another significant step in the asset manager’s foray into blockchain-based finance.
BUIDL is now accessible on seven different blockchains, including Ethereum, Polygon, Aptos, Arbitrum, and Optimism. Despite its availability on multiple platforms, only 62 wallets currently hold BUIDL on-chain, as reported by rwa.zyz data.
The fund, officially known as the BlackRock USD Institutional Digital Liquidity Fund, merges a yield-bearing portfolio of cash and U.S. Treasuries with the efficiency and security of blockchain technology. Since its launch on Ethereum in 2023, the fund has attracted $1.7 billion in investments and is projected to surpass $2 billion by early April, as stated by Securitize.
Carlos Domingo, the co-founder and CEO of Securitize, remarked on the growth of demand for tokenized real-world assets over the past year. He emphasized the importance of offering institutional-grade products on-chain and highlighted Solana’s attributes of speed, scalability, and cost efficiency as key factors in expanding BUIDL to the blockchain.
Traditional money market funds provide investors with the opportunity to earn interest on idle cash but come with limitations such as restricted operating hours. Blockchain-based alternatives like BUIDL offer continuous accessibility to funds.
BlackRock is not the only player in this space. Franklin Templeton also offers a similar tokenized fund with a market capitalization of $692 billion and 558 holders. Additionally, Figure Markets recently introduced YLDS, an interest-bearing stablecoin. Other notable tokenized treasury funds include Hashnote Short Duration Yield Coin (USYC) and Ondo U.S. Dollar Yield.
The tokenized Treasury market has experienced rapid growth, nearly multiplying sixfold over the past year and surpassing $5 billion in market capitalization, as indicated by rwa.xyz data.