Source: CoinMarketCap
BlackRock’s tokenized money market fund, BUIDL, has expanded to the Solana blockchain as its assets under management (AUM) surpass $1.7 billion.
BlackRock’s tokenized money market fund, BUIDL, has expanded to the Solana blockchain as its assets under management (AUM) surpass $1.7 billion. The fund, launched in March 2024 in partnership with Securitize, has grown rapidly, securing a dominant position in the tokenized U.S. Treasury market.
Securitize CEO Carlos Domingo announced the Solana expansion on March 25, calling it a “natural next step” as demand for tokenized real-world assets continues to rise. Solana is the seventh blockchain to support BUIDL, which was initially launched on Ethereum before expanding to Aptos, Arbitrum, Avalanche, Optimism, and Polygon. Solana Foundation President Lily Liu said the network’s speed, low costs, and developer activity make it well-suited for tokenized assets.
BUIDL leads the tokenized U.S. Treasury sector, holding a 34% market share with a $1.7 billion market capitalization, according to RWA.xyz. It is followed by Hashnote, Franklin Templeton, and Ondo USDY. In July 2024, BUIDL had a market cap of $500 million, meaning it has grown 240% in just seven months. Ethereum-based treasuries still dominate the space, with a total market cap of $3.6 billion, representing 72% of the market.
DeFiLlama data shows that BUIDL gained $700 million in new investments over 11 days, pushing its AUM past $1.7 billion. The fund first crossed the $1 billion mark on March 13. Investors use money market funds like BUIDL to earn returns on idle cash through short-term, yield-bearing instruments such as U.S. Treasurys. Traditional money markets operate within standard financial hours and have slow settlement times, while tokenized products allow for 24/7 trading.
BUIDL is pegged to the U.S. dollar and pays daily accrued dividends to investors each month through its Securitize partnership. As of August 2024, the fund had distributed $7 million in dividends. The expansion into Solana comes months after BUIDL’s initial move toward a multichain model. On Nov. 13, it expanded to Aptos, Arbitrum, Avalanche, Optimism and Polygon, a move aimed at attracting more investors.
BlackRock launched BUIDL with the goal of making off-chain assets more accessible. Securitize COO Michael Sonnenshein stated that the fund addresses inefficiencies in traditional money markets. Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX), launched in April 2021, has accumulated over $671 million in AUM and is available on eight blockchain platforms, including Stellar, Polygon and Avalanche.
With tokenized real-world assets exceeding $5 billion in total market capitalization, firms are competing for a share of the growing sector. BUIDL’s continued expansion and rising AUM signal a strong investor appetite for blockchain-based financial products.
