BUIDL's First On-Chain Treasury Revenue Distribution
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BUIDL, a tokenized fund backed by BlackRock, was first launched on the Ethereum (ETH) blockchain in March of last year. The fund invests in short-term dollar-denominated assets, such as U.S. Treasury bonds, repurchase agreements, and cash equivalents, providing both liquidity and yield to institutional investors. Investors hold BUIDL tokens, pegged to the U.S. dollar, and receive dividends directly on-chain.
Since its launch, BUIDL has expanded to six blockchains, including Solana (SOL), Aptos (APT), Avalanche (AVAX), and Optimism (OP). This dividend milestone is significant because it marks the first time that actual treasury revenue has been distributed to on-chain token holders. It demonstrates that core features of traditional financial products can be implemented in a blockchain environment.
Market analysts say this case highlights the advantages of blockchain-based financial infrastructure, including improved settlement speeds, transparent ownership records, and programmable dividend structures. Indeed, BUIDL surpassed $2 billion in assets under management among tokenized funds earlier this year, demonstrating growing institutional demand.
However, there are also voices of caution regarding tokenized money market funds. The Bank for International Settlements recently warned in a report that tokenized products could increase liquidity and operational risks if used as collateral in the digital financial ecosystem. The industry maintains that as institutional adoption expands, regulation and stability verification must proceed simultaneously.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
