BlackRock and Securitize Expand $1.7B Tokenized Money Market Fund on Solana

Securitize announced that BlackRock's tokenized money market fund BUIDL has become available on the Solana platform, marking the fund manager's next step in bringing blockchain-based financial solutions to the market.

This extension makes BUIDL available on seven blockchains, including Ethereum, Polygon, Aptos, Arbitrum, and Optimism. However, according to rwa.zyz, only 62 wallets currently store BUIDL on the blockchain.

The fund’s official name is the BlackRock USD Institutional Digital Liquidity Fund, which combines a short-term income portfolio of cash and U.S. Treasuries with blockchain settlement and remittance capabilities. Since launching on Ethereum in 2023, the fund has raised $1.7 billion and is on track to reach $2 billion by early April, according to Securitize.

“In the year since BUIDL’s launch, we’ve seen a significant increase in interest in tokenized real-world assets, validating the importance of bringing institutional products to the blockchain,” said Carlos Domingo, co-founder and CEO of Securitize, in a statement. “As the RWA and tokenized treasury market matures, expanding BUIDL to Solana — a blockchain known for its high speed, scalability, and cost efficiency — is a logical next step.”

Money market funds typically allow investors to earn interest on idle cash, but they have trading restrictions such as limited trading hours. Blockchain versions such as BUIDL provide unlimited access.

BlackRock isn’t alone in this market. Franklin Templeton offers a similar tokenized fund that currently has a market cap of $692 billion and 558 holders, and Figure Markets recently introduced YLDS, an interest-bearing stablecoin. Other notable tokenized treasury funds include Hashnote Short Duration Yield Coin (USYC) and Ondo US Dollar Yield.

According to rwa.xyz, the tokenized treasury bond market is one of the fastest growing sectors among tokenized assets, having grown nearly sixfold in the last year and recently surpassing $5 billion in market cap.

Source: cryptonews.net