BlackRock’s BUIDL Launch on Solana

BlackRock’s tokenized money market fund, BUIDL, is now available on Solana, according to Securitize, marking a significant step in the asset manager’s blockchain finance initiatives.

This expansion now includes seven blockchains: Ethereum, Polygon, Aptos, Arbitrum, Optimism, and Solana. However, only 62 wallets currently hold BUIDL on-chain, as per rwa.zyz data.

Officially known as the BlackRock USD Institutional Digital Liquidity Fund, BUIDL combines a yield-bearing portfolio of short-term cash and U.S. Treasuries with blockchain’s settlement and transfer capabilities. Since its introduction on Ethereum in 2023, BUIDL has attracted $1.7 billion and is projected to surpass $2 billion by early April, Securitize reports.

Carlos Domingo, co-founder and CEO of Securitize, stated the launch’s success reflects increased demand for tokenized real-world assets and highlighted the advantages of bringing institutional-grade products on-chain. The choice to expand BUIDL to Solana, recognized for its speed, scalability, and cost efficiency, was a logical progression.

Traditional money market funds allow investors to earn interest on idle cash but are limited by trading hours. In contrast, blockchain versions like BUIDL facilitate constant access to funds.

Other competitors in this space include Franklin Templeton, which has a tokenized fund with a market capitalization of $692 billion and 558 holders, and Figure Markets, which has recently launched YLDS, an interest-bearing stablecoin. Major tokenized treasury funds also include the Hashnote Short Duration Yield Coin (USYC) and Ondo U.S. Dollar Yield.

The tokenized Treasury market is rapidly expanding, having grown nearly sixfold in the past year and surpassing $5 billion in market capitalization, according to rwa.xyz data.