BlackRock’s BUIDL expands to Solana as tokenized money market fund nears $2B

BlackRock’s tokenized money market fund has expanded to the Solana blockchain as its market capitalization approaches the $2 billion mark.

On March 25, Carlos Domingo, the founder and CEO of real-world asset (RWA) tokenization platform Securitize, welcomed the Solana network to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). This marked the tokenized money market fund’s expansion to another blockchain network. 

BlackRock launched BUIDL in March 2024 in partnership with Securitize. In a Fortune report, Securitize chief operating officer Michael Sonnenshein said the fund aims to make offchain assets “unboring.” 

The executive said they are advancing some of the deficiencies of money markets in their traditional formats. 

RWA data platform rwa.xyz shows that BlackRock and Securitize’s BUIDL leads the Tokenized United States Treasurys in market capitalization. The platform’s data shows that the fund has a market capitalization of $1.7 billion and a nearly 34% market share. 

BlackRock's BUIDL reached a $1.7 billion market cap. Source: RWA.xyz

BUIDL dominates the Tokenized US Treasurys list as the leading asset in its class. The tokenized product is followed by Hashnote, Franklin Templeton and Ondo USDY. 

The fund has experienced significant growth in just seven months. In July 2024, BUIDL’s market capitalization first reached $500 million. Its current market capitalization represents 240% growth since July. 

BUIDL’s price is pegged to the US dollar and pays daily accrued dividends to investors each month through its Securitize partnership. As of August 2024, the fund had paid its holders $7 million in dividends. 

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The tokenized product’s expansion into the Solana ecosystem comes months after the product started to go multichain.

On Nov. 13, the tokenized money market fund, which was initially launched on the Ethereum network, expanded to Aptos, Arbitrum, Avalanche, Optimism and Polygon. The chain expansion was expected to attract more investors to the product. 

While tokenized Treasurys have expanded to other blockchains, Ethereum continues to dominate the asset class. According to RWA.xyz, Ethereum-based treasuries have a market capitalization of $3.6 billion, 72% of the market. 

Tokenized treasuries market capitalization by blockchain. Source: RWA.xyz

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