BlackRock’s tokenized money market fund BUIDL has reached two notable milestones: it has paid out roughly $100 million in lifetime dividends since its March 2024 launch and now holds more than $2 billion in assets, according to tokenization firm Securitize, which serves as the product’s transfer agent and administrator. Those figures make BUIDL one of the largest tokenized cash products in the market and mark the first time a tokenized Treasury vehicle has hit the $100 million payout threshold.
How it works
BUIDL is structured like a regulated money market fund: it invests in short-dated U.S. Treasuries, repurchase agreements and cash equivalents, and issues fund shares that are represented by tokens on public blockchains. The product originally launched on Ethereum but has since expanded across multiple networks to meet growing demand for on-chain dollar yield among institutional buyers. Qualified institutional investors can hold these fund tokens directly, with yield accruing from the underlying portfolio and being paid out onchain.
Why it matters
The payout and asset milestones are being read as evidence that blockchain-native finance can operate at institutional scale. Unlike stablecoins, which are often positioned as digital cash, BUIDL is a regulated investment vehicle offering yield-bearing dollar exposure—making it an increasingly popular alternative for institutions looking for regulated, on-chain dollar yields.
Market integration and use cases
BUIDL’s tokens have found use beyond passive yield holdings: they are being used as plumbing within crypto markets, serving as backing for stablecoins (for example, Ethena’s USDtb) and as collateral in trading and financing arrangements. That positioning places BUIDL at the intersection of traditional short-term rates markets and efforts to move collateral, settlement and yield strategies onchain.
Regulatory questions
Tokenized money market funds have grown rapidly over the past year, but regulators and policymakers have flagged potential risks, including questions around settlement finality, liquidity assumptions and how tokenized securities behave in market stress. Those concerns will likely shape how quickly and broadly institutions lean into tokenized cash products going forward.
Bottom line
BUIDL’s $100 million in payouts and $2+ billion asset base underscore growing institutional appetite for regulated, yield-bearing on-chain dollar exposure—while also highlighting the regulatory and operational issues that the market still needs to address.
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