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The BlackRock USD Institutional Digital Liquidity (BUIDL) fund paid out over $2 million in dividends in July, marking a record monthly payout.
According to Etherscan data, BlackRock distributed $2.12 million to investors in July, a 16% increase from June. Since its launch, the fund has paid out more than $7 million in dividends, with yields rising each month.
BlackRock’s BUIDL July Dividends Reach $2.1 Million
BUIDL, BlackRock’s first tokenized fund, was launched on the Ethereum blockchain in March. It has since reached a market value of approximately $522 million, as per Etherscan data, and quickly surpassed established funds like Franklin Templeton’s Franklin OnChain US Government Money Fund (BENJI).
According to Deloitte, BUIDL’s rising dividend yields show institutional investors’ growing preference for tokenized money market funds. These funds offer improved liquidity, accessibility, and efficiency compared to traditional funds. DeFi protocols, such as Ondo, are also using BUIDL for their derivative products.
“While fund tokenization is not without its management, legal, and regulatory challenges, it has the potential to transform the shape of private asset funds and resolve the concerns of regulators regarding such assets. There are significant benefits in terms of lower costs and higher revenues for service providers and asset managers. Investors find the ability to diversify their portfolios and enhance the liquidity of their investments very appealing”, Deloitte report read.
The tokenized US Treasury market has experienced substantial growth in 2024. RWA.xyz data shows the total value of this segment expanded from $726.23 million to $1.88 billion this year. BlackRock’s BUIDL and Franklin Templeton’s FOBXX are major contributors, with market capitalizations of $522.81 million and $414.30 million, respectively.
Read more: How To Invest in Real-World Crypto Assets (RWA)?
Tokenized Treasury Market Capitalization. Source: RWA.xyz
Analysts predict this growth will continue, with the market potentially reaching $3 billion by the end of 2024. The demand from decentralized autonomous organizations (DAOs) and decentralized finance (DeFi) projects seeking stable, risk-free yields within the blockchain ecosystem is driving this growth. In the long term, consulting firm McKinsey & Company forecasts the tokenized financial assets market could reach $2 trillion by 2030.
RWA tokenization involves converting tangible assets like bonds, real estate, and debt into digital tokens on blockchain networks. These digital representations can be swapped, transferred, and leveraged within DeFi ecosystems. Mohamed Elkasstawi, co-founder and CEO of Hamilton, explained potential new opportunities in the RWA tokenization sector to BeInCrypto.
“We anticipate that tokenized assets will bring increased transparency, liquidity, and accessibility to traditional financial markets. We believe that enabling fractional ownership and 24/7 liquidity will democratize access to high-quality investment opportunities,” he said.
Read more: RWA Tokenization: A Look at Security and Trust
Meanwhile, BlackRock remains a leading provider of spot Bitcoin ETFs and spot Ethereum ETFs, with the latter beginning trading on July 23. BlackRock’s chief investment officer, Samara Cohen, mentioned earlier this week that it’s unlikely we will see more funds based on other cryptocurrencies soon.
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