BlackRock’s USD Institutional Digital Liquidity (BUIDL) fund paid out more than $2 million in July, its highest monthly dividend ever.
According to Etherscan data, BlackRock paid $2.12 million to investors in July, an increase of 16% from June. The fund has paid out more than $7 million in dividends, with returns rising every month since its inception.
BlackRock’s BUIDL Fund Achieves Record Dividend Payout in July
BUIDL is BlackRock’s first tokenized fund, launched on the Ethereum blockchain in March. The fund’s market capitalization has reached about $522 million, according to Etherscan data, quickly surpassing existing funds such as Franklin Templeton’s Franklin On-Chain U.S. Government Money Fund (BENJI).
Increasing Adoption of Tokenized Money Market Funds
Deloitte highlighted that the rise in BUIDL dividend yields reflects institutional investors’ growing preference for tokenized money market funds. These funds offer greater liquidity, accessibility, and efficiency compared to traditional funds. Decentralized finance protocols like Temperature also utilize BUIDL to develop derivatives.
Tokenized U.S. Treasury Market Growth and Future Projections
The tokenized U.S. Treasury market experienced significant growth in 2024, with BlackRock’s BUIDL and Franklin Templeton’s FOBXX playing significant roles. Analysts predict continued growth in the market, reaching $3 billion by the end of 2024. This trend is driven by the demand for stable, risk-free returns in the blockchain ecosystem, with projections suggesting a $2 trillion market for tokenized financial assets by 2030.
Risk-weighted asset tokenization involves converting physical assets such as bonds, real estate, and debt into digital tokens on a blockchain network, enabling greater transparency and accessibility in financial markets. Hamilton co-founder and CEO Mohamed Elkastawi emphasized the potential benefits of RWA tokenization, including fractional ownership and 24/7 liquidity.
BlackRock’s continued involvement in the cryptocurrency space, especially with their Bitcoin and Ethereum spot ETFs, indicates a strategic focus on digital assets. However, the company’s Chief Investment Officer remains cautious about expanding to other cryptocurrencies in the near future.
