BUIDL tokens are used in crypto market infrastructure and as collateral, bridging traditional finance and blockchain technology.
BlackRock’s tokenized money market fund BUIDL has distributed about $100 million in dividends since launching in March 2024, according to tokenization firm Securitize, which serves as the product’s transfer agent and administrator.
The fund, which invests in short-dated U.S. Treasuries, repurchase agreements and cash equivalents, has grown past $2 billion in value, making it one of the largest tokenized cash products in the market.
Unlike stablecoins, BUIDL is structured as a regulated money market-style vehicle whose shares are represented by tokens that settle on public blockchains. BUIDL originally launched on Ethereum, but has expanded across multiple networks as demand for onchain dollar yield products grows.
The $100 million in payouts from BlackRock’s BUIDL fund serves as evidence of blockchain-based finance delivering at institutional scale. The milestone comes as tokenized money market funds gain traction as a regulated alternative to stablecoins for institutions looking for yield-bearing dollar exposure.
The category has grown quickly over the past year, though regulators and policymakers have flagged risks around settlement finality, liquidity assumptions and how tokenized securities behave during stress events.
BUIDL’s structure allows qualified institutional investors to hold fund shares as blockchain tokens, with yield accruing from the underlying portfolio and paid out to investors onchain.
The product has also found use beyond passive yield. BUIDL tokens have been integrated into crypto market plumbing, including as backing for stablecoins such as Ethena’s USDtb and as collateral in trading and financing arrangements.
That positioning has helped BUIDL sit at the intersection of traditional short-term rates markets and the growing push to move collateral, settlement and yield strategies onchain.
