BlackRock has recently expanded its tokenized money market fund, known as BUIDL, by integrating it with the Solana network. This development marks a significant strategic move that reinforces the company’s position in the digital assets arena. On March 25, Carlos Domingo, CEO of Securitize—the platform responsible for real-world asset tokenization—announced that Solana would serve as the latest network support for this innovative investment product.
Launched in March 2024 as a result of a partnership between BlackRock and Securitize, BUIDL was designed to modernize conventional money market funds. The aim was to create more transparent, accessible, and technologically advanced investment vehicles by bridging traditional finance with blockchain technology.
During an interview with Fortune, Michael Sonnenshein, COO of Securitize, discussed the vision behind the initiative, emphasizing its goal to bring off-chain assets into an engaging digital framework. By harnessing the benefits of blockchain, the project seeks to transform mundane, traditional assets into dynamic components of a modern investment ecosystem.
This latest expansion onto Solana comes more than a year after BUIDL initially debuted on several blockchain platforms. Previously, the fund became available on networks including Ethereum, Aptos, Arbitrum, Optimism, and Polygon. The decision to pursue a multichain strategy reflects the growing interest among institutional investors in tokenized products and the need to provide diversified access across various blockchain infrastructures.
Tokenized U.S. Treasury Bonds: A Market Leader
Industry sources indicate that BUIDL has rapidly emerged as a frontrunner in the tokenized U.S. Treasury bonds segment. The fund now boasts a market capitalization of approximately 1.7 billion USD, capturing close to 34% of the market share. In comparison with competitors such as Hashnote, Franklin Templeton, and Ondo USDY, BUIDL has outpaced them by offering a robust investment structure that is tied to the U.S. dollar. This design facilitates the accrual of dividends on a daily basis, which are then disbursed regularly to investors through the integrated Securitize platform.
Investors have also benefited from the fund’s ability to generate regular income, which further demonstrates its potential as an instrument for creating passive revenue streams.
Ethereum’s Reign and Solana’s Rising Influence
Although BUIDL is now accessible on multiple blockchain networks, Ethereum continues to dominate the market for tokenized U.S. Treasury instruments. Ethereum currently accounts for about 72% of this segment, with a total capitalization reaching 3.6 billion USD. Nevertheless, the introduction of BUIDL on Solana is expected to enhance ecosystem decentralization by offering lower transaction fees and improved scalability, thereby attracting a broader spectrum of investors.
This strategic initiative by BlackRock exemplifies how established financial institutions are increasingly embracing digital asset technologies. By developing regulated investment products grounded in traditional assets, companies like BlackRock are paving the way for a new era of innovative and resilient investment funds.
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