BlackRock’s tokenized money market fund, BUIDL, has distributed approximately $100 million in dividends since its launch in March 2024, according to tokenization firm Securitize, which serves as the product’s transfer agent and administrator.
The fund, which invests in short-term US Treasuries, repurchase agreements and cash equivalents, has surpassed the value of $2 billion, making it one of the largest tokenized cash products on the market.
Unlike stablecoins, BUIDL is structured as a regulated money market vehicle whose shares are represented by tokens settled on public blockchains. BUIDL initially launched on Ethereum, but has expanded across multiple networks as demand for on-chain dollar yield products increases.
The $100 million in disbursements from BlackRock’s BUIDL fund demonstrate the effectiveness of blockchain-based financing at an institutional scale. This milestone comes as tokenized money market funds gain traction as a regulated alternative to stablecoins for institutions seeking yield-producing dollar exposure.
The category has grown rapidly over the past year, although regulators and policymakers have flagged risks related to settlement finality, liquidity assumptions and the behavior of tokenized securities during stress events.
BUIDL’s structure allows qualified institutional investors to hold fund shares as blockchain tokens, with the yield from the underlying portfolio paid to investors on-chain.
The product has also found use beyond passive yield. BUIDL tokens have been integrated into the plumbing of the crypto market, including as backing for stablecoins such as Ethena’s USDtb and as collateral in trade and financial agreements.
This positioning has helped BUIDL position itself at the intersection of traditional short-term rates markets and the growing push to move collateralization, settlement and yield strategies on-chain.
