BlackRock's BUIDL Fund Adds Solana, Assets Near $2 Billion

BlackRock, the world's largest asset manager, has expanded its tokenized money market fund, BUIDL, to include Solana, a prominent blockchain platform known for its high-speed transactions and low fees. This move comes as the fund nears $2 billion in assets under management. The BUIDL fund, which stands for "Build," is designed to provide investors with exposure to a diversified portfolio of tokenized real-world assets (RWAs) and cryptocurrencies.

The expansion to Solana is a significant development for the fund, as it allows investors to gain exposure to one of the fastest-growing blockchain ecosystems. Solana has gained popularity among developers and users due to its ability to process thousands of transactions per second, making it an attractive option for decentralized finance (DeFi) applications and non-fungible token (NFT) marketplaces.

BlackRock launched BUIDL in March 2024 in partnership with Securitize, a real-world asset (RWA) tokenization platform. The fund aims to make offchain assets more accessible and attractive to investors. The fund has experienced significant growth in just seven months, with its market capitalization increasing from $500 million in July 2024 to $1.7 billion, representing a 240% growth. The fund's price is pegged to the US dollar and pays daily accrued dividends to investors each month through its Securitize partnership. As of August 2024, the fund had paid its holders $7 million in dividends.

The tokenized product’s expansion into the Solana ecosystem comes months after the product started to go multichain. On Nov. 13, the tokenized money market fund, which was initially launched on the Ethereum network, expanded to Aptos, Arbitrum, Avalanche, Optimism and Polygon. The chain expansion was expected to attract more investors to the product. While tokenized Treasurys have expanded to other blockchains, Ethereum continues to dominate the asset class.

The move to include Solana in the BUIDL fund is part of BlackRock's broader strategy to invest in the tokenization of real-world assets. The firm recently announced a $500 million investment in the BUIDL fund as part of its $1 billion Tokenization Grand Prix, a competition aimed at promoting the development of tokenized assets. This investment is expected to further accelerate the growth of the BUIDL fund and its exposure to the Solana ecosystem.

The expansion to Solana is a testament to BlackRock's commitment to innovation and its belief in the potential of blockchain technology. By providing investors with access to a diversified portfolio of tokenized assets, the BUIDL fund is helping to bridge the gap between traditional finance and the emerging world of digital assets. As the fund continues to grow and expand, it is likely to play an increasingly important role in the development of the tokenized asset market.