BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has made waves in the cryptocurrency space by distributing a record-breaking $4.17 million in dividends during March. This marks the largest monthly payout for a tokenized Treasury fund and highlights the increasing interest from institutional investors in on-chain exposure to traditional financial products.
According to a report by BUIDL’s issuer, Securitize, the fund has now distributed a total of $25.4 million in dividends since its inception. This significant milestone underscores the growing demand for tokenized US Treasury funds and the appeal of receiving daily dividend payouts directly on-chain.
The fund, which tokenizes a money market strategy consisting of US Treasuries and cash equivalents, provides investors with near real-time yield accruals. This innovative approach offers an alternative to crypto-native stablecoins and has positioned tokenized US Treasury funds as a key component in the emerging field of on-chain finance.
BUIDL’s assets under management (AUM) hit an all-time high of $1.93 billion in March, less than a month after surpassing the $1 billion mark. This rapid growth has solidified BUIDL as one of the largest real-world asset (RWA) products on public blockchains, trailing only four stablecoins in market capitalization.
A significant driver of BUIDL’s AUM expansion is Ethena Labs’ synthetic dollar, USDtb, which relies on the fund for 90% of its backing. USDtb, designed to maintain price stability through a delta-neutral strategy, allocates reserve capital into BUIDL to earn yield from US Treasury exposure. This strategic partnership has made BUIDL a critical component in Ethena’s stablecoin design, bridging traditional fixed-income instruments with crypto-native applications.
Looking ahead, MakerDAO’s Spark will vote on a proposal to invest $500 million in BUIDL, which could further boost the fund’s market size. This move would solidify DeFi protocols’ participation in investments, representing 74% of the fund’s current numbers.
While BUIDL has expanded its offering to various blockchains like Arbitrum, Polygon, and Solana, Ethereum remains the dominant platform with $1.72 billion of BUIDL shares issued on its blockchain. This multi-chain deployment aligns with Securitize’s strategy to make institutional-grade financial products accessible across decentralized environments, fostering seamless integrations with protocols and wallets across ecosystems.
In conclusion, BUIDL’s record-breaking dividend distribution and rapid AUM growth underscore the growing demand for tokenized US Treasury funds and the convergence of traditional finance with blockchain technology. As the cryptocurrency space continues to evolve, BUIDL is at the forefront of providing institutional investors with innovative opportunities for on-chain exposure to traditional financial products.