Ethereum-Based Tokenized Fund by BlackRock Distributes $2.1 Million
The BlackRock USD Institutional Digital Liquidity (BUIDL) fund achieved a record-breaking milestone in July by distributing over $2 million in dividends, marking the highest monthly payouts in its history.
According to data from Etherscan, the tokenized fund disbursed $2.12 million to investors in July, representing a 16% increase from the previous month. To date, the fund has issued dividends exceeding $7 million, with dividend yields progressively rising each month, as confirmed by a representative from Securitize to Decrypt.
Launched on the Ethereum network in March, BUIDL is BlackRock’s inaugural tokenized fund on a public blockchain. Since its inception, the fund has amassed a market value of approximately $522 million, as reported by Etherscan.
Upon its announcement, BlackRock highlighted several advantages for investors, including facilitating ownership issuance and trading on a blockchain, broadening investor access to on-chain offerings, ensuring immediate and transparent settlement, and enabling transfers across platforms.
Securitize noted that BUIDL boasts the highest-valued tokenized treasury, surpassing $500 million. Noteworthy on-chain funds like Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) and Ondo Finance’s USD Yield (USDY) fund are also among the top contenders.
The escalating dividend yields of BUIDL coincide with institutional investors’ increasing adoption of tokenized money market funds due to enhanced liquidity, accessibility, and efficiency compared to traditional funds, according to financial services firm Deloitte. Additionally, DeFi protocols such as Ondo are leveraging BUIDL for their derivative products.
Meanwhile, BlackRock, a prominent provider of spot Bitcoin ETFs, recently introduced spot Ethereum ETFs for trading starting on July 23. Samara Cohen, the firm’s chief investment officer, expressed skepticism about the likelihood of introducing funds based on other cryptocurrencies in the near future.
