The BlackRock USD Institutional Digital Liquidity （BUIDL） fund achieved a record payout in July, distributing over $2.1 million in dividends. This marks a significant milestone for the fund, highlighting the growing interest in tokenized money market funds.
Points
- BUIDL fund paid out $2.1 million in dividends in July.
- The payout marks a 16% increase from June’s dividends.
- The fund has paid out over $7 million in dividends since its launch.
- BUIDL’s market value reached approximately $522 million.
- Institutional interest in tokenized money market funds is growing.
BlackRock’s USD Institutional Digital Liquidity （BUIDL） fund set a new record in July by distributing over $2.1 million in dividends to investors, reflecting a 16% increase from June. This substantial payout underscores the rising interest and confidence in tokenized money market funds, particularly among institutional investors.
Launched on the Ethereum blockchain in March, the BUIDL fund has rapidly gained traction, reaching a market value of approximately $522 million, as per Etherscan data. Since its inception, the fund has paid out more than $7 million in dividends, with yields steadily increasing each month. This consistent growth highlights the fund’s appeal as a reliable investment vehicle in the digital asset space.
BlackRock’s BUIDL fund has outperformed established funds like Franklin Templeton’s Franklin OnChain US Government Money Fund （BENJI）, demonstrating the competitive edge and innovative approach of tokenized financial products. According to Deloitte, the rising dividend yields of BUIDL indicate a growing preference among institutional investors for tokenized money market funds, which offer enhanced liquidity, accessibility, and efficiency compared to traditional funds.
The demand for tokenized financial products is further evidenced by the significant growth in the tokenized US Treasury market. RWA.xyz data shows that the total value of this segment expanded from $726.23 million to $1.88 billion in 2024. BlackRock’s BUIDL and Franklin Templeton’s FOBXX have been major contributors to this growth, with market capitalizations of $522.81 million and $414.30 million, respectively.
Analysts predict that the tokenized financial assets market will continue to grow, potentially reaching $3 billion by the end of 2024. This growth is driven by the increasing demand from decentralized autonomous organizations （DAOs） and decentralized finance （DeFi） projects seeking stable, risk-free yields within the blockchain ecosystem. In the long term, consulting firm McKinsey & Company forecasts that the tokenized financial assets market could reach $2 trillion by 2030.
RWA tokenization involves converting tangible assets like bonds, real estate, and debt into digital tokens on blockchain networks. These digital representations can be traded, transferred, and leveraged within DeFi ecosystems, offering new opportunities for investors. Mohamed Elkasstawi, co-founder and CEO of Hamilton, highlighted the potential of tokenized assets to bring increased transparency, liquidity, and accessibility to traditional financial markets.
BlackRock remains a leading provider of spot Bitcoin ETFs and spot Ethereum ETFs, with the latter beginning trading on July 23. BlackRock’s chief investment officer, Samara Cohen, recently stated that while there are no immediate plans for new funds based on other cryptocurrencies, the firm continues to explore opportunities in the digital asset space.
解説
- BlackRock’s BUIDL fund exemplifies the growing institutional interest in tokenized financial products, reflecting a broader trend towards digital asset integration in traditional finance.
- The significant increase in dividend payouts and market value highlights the fund’s success and the advantages of tokenized money market funds, including enhanced liquidity and efficiency.
- The expansion of the tokenized US Treasury market and the forecasted growth of the tokenized financial assets market underscore the potential for digital tokens to transform traditional finance by offering more transparent and accessible investment opportunities.
- As leading financial institutions like BlackRock continue to innovate and explore opportunities in the digital asset space, the adoption of tokenized financial products is likely to accelerate, driving further growth and integration within the financial ecosystem.