BlackRock's BUIDL Tokenize money market fund has distributed $100 million in cumulative dividends from Treasury bond yields, demonstrating the scalability of Tokenize securities.
BlackRock USD Institutional Digital Liquidity Fund (BUIDL), the global asset management giant's first Tokenize money market fund, has reached a significant milestone with total dividend payouts exceeding $100 million since its launch. This figure not only reflects the increasing adoption of Tokenize securities among institutional investors but also demonstrates the practical operational viability of blockchain-based financial infrastructure at scale.
This milestone was announced on Monday by Securitize, the fund's issuer and Tokenize partner. BUIDL launched in March 2024 on the Ethereum blockchain, investing in short-term assets denominated in USD such as U.S. Treasury bills, repurchase agreements, and cash equivalents.
Investors purchase BUIDL Token Peg to the US dollar and receive direct on- chain dividend distributions, reflecting earnings from the underlying assets. Following initial success, the fund has expanded to six additional blockchains, including Solana, Aptos, Avalanche, and Optimism, facilitating broader access for institutional investors.
The total payout of $100 million marks a significant milestone, demonstrating that Tokenize securities can operate efficiently at scale while maintaining the core functions of traditional financial products. This underscores the operational advantages offered by blockchain technology, including faster payments, transparent ownership records, and programmable distribution capabilities.
These characteristics are increasingly attracting interest from large-scale asset managers and institutional investors seeking efficient solutions for Tokenize real assets. BUIDL alone has seen impressive adoption, with its fund value exceeding $2 billion earlier this year.
Prospects and challenges of the Tokenize fund market
Tokenize money market funds are emerging as one of the fastest-growing segments of the on- chain real asset market. Their appeal lies in their ability to combine money market-style returns with higher operational efficiency, a factor attracting significant attention from traditional financial institutions. Some market participants even XEM these products as potential counterweights to the anticipated growth of stablecoins.
In July, Teresa Ho, a strategist at JPMorgan, argued that Tokenize money market funds still retain the long-term appeal of “cash as an asset,” even as regulatory developments such as the approval of the GENIUS Act are expected to boost stablecoin adoption and potentially erode the role of cash-like instruments.
However, alongside their rapid growth, these funds also face intense scrutiny. The Bank for International Settlements recently warned that such products could create operational and liquidation risks, especially as they become an increasingly important source of collateral in the digital asset ecosystem.
