Launched in 2024, BlackRock and Securitize’s BUIDL tokenized fund has now paid out more than $100 million in dividends. We take a look back at this major milestone, which reflects the growing adoption of this type of investment vehicle.
BlackRock and Securitize’s BUIDL exceeds $100 million in dividends
In March 2024, BlackRock filed an application with the Securities and Exchange Commission (SEC) for a tokenized fund in partnership with Securitize. Since then, the famous BUIDL has grown significantly and even exceeded $2.9 billion in assets under management last May, according to data from RWA.xyz. On Tuesday, the fund reached a new milestone when Securitize announced that BUIDL had now exceeded $100 million in dividends paid.
To date, BUIDL is available on nine blockchains, namely Ethereum (ETH), BNB Chain, Aptos (APT), Solana (SOL), Avalanche C-Chain (AVAX), Arbitrum (ARB), OP Mainnet (OP), and Polygon (POL). In terms of accessibility, however, it should be noted that the minimum entry ticket is $5 million.
Although this fund is now capitalized at nearly $1.74 billion, representing a decline of approximately 41% from its all-time high (ATH), it is nonetheless a major milestone demonstrating the adoption of tokenized assets by traditional finance players.
This fall, BUIDL had almost returned to its ATH, but since then, it seems to have suffered from the decline that has hit the ecosystem over the past two months, losing 25% of its capitalization over the last 30 days:
Despite this decline, it does not detract from the underlying trend that is at work today. Last month, Binance announced that VIP traders could now use BUIDL as collateral for their leveraged positions. At the same time, Amundi unveiled the hybridization of one of its money market funds, capitalized at €5.57 billion, making it available for tokenization on Ethereum. Two weeks ago, JPMorgan announced that it would also launch a tokenized fund called MONY, also on Ethereum.
While the emerging bear market and the Federal Reserve’s (Fed) apparent downward cycle in interest rates could undermine the current adoption, it is highly likely that this trend toward tokenization of real-world assets will continue to develop over the coming months and years.
