On March 25, 2025, BlackRock’s tokenized money market fund, known as BUIDL, made a significant leap by expanding to the Solana blockchain, bringing its market capitalization close to the $2 billion mark. This strategic move recognizes the growing importance of blockchain technology in financial markets and further solidifies BlackRock’s role as a leading innovator in the realm of digital assets.
Carlos Domingo, founder and CEO of the real-world asset (RWA) tokenization platform Securitize, welcomed the inclusion of the Solana network into the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). Launched in March 2024 in collaboration with Securitize, BUIDL aims to revolutionize traditional money market systems, making offchain assets ‘unboring,’ as described by Securitize’s chief operating officer, Michael Sonnenshein.
Market Dominance and Competitive Edge
Data from the RWA platform indicates that BUIDL currently holds a market capitalization of approximately $1.7 billion, claiming an impressive 34% market share in the Tokenized United States Treasuries category. This achievement places BUIDL at the forefront of tokenized financial products, outperforming competitors such as Hashnote and Franklin Templeton.
Remarkably, BUIDL experienced a meteoric rise in valuation, growing by 240% since its initial market cap reached $500 million in July 2024. This rapid expansion is indicative of rising investor interest in digital financial products and the potential of tokenized assets.
Traditionally pegged to the US dollar, BUIDL also offers the enticing feature of daily accrued dividends paid to investors each month, showcasing the fund’s commitment to maximizing investor returns. As of August 2024, BUIDL had already distributed a notable $7 million in dividends to its holders.
A Multichain Future
The recent incorporation of Solana into the BUIDL ecosystem follows previous expansions to several other blockchain networks such as Aptos, Arbitrum, Avalanche, Optimism, and Polygon. The decision to go multichain aims to attract a diverse array of investors, enhancing the fund’s position in the rapidly evolving landscape of digital assets.
Currently, Ethereum continues to dominate the tokenized treasury market with a staggering $3.6 billion market cap, representing 72% of the market. However, BlackRock’s initiatives highlight a shift towards multichain adaptability, presenting both challenges and opportunities within the crypto landscape.
As BUIDL expands into the Solana ecosystem—a blockchain renowned for its speed and low transaction costs—the implications for traditional finance are profound. This move not only signifies BlackRock’s willingness to innovate but also underscores the potential of decentralized finance (DeFi) in reshaping established financial norms.
This expansion is not merely a technical advancement; it reinforces a growing trend where institutional players begin to see blockchain technologies not as competitors but as essential components of the modern financial infrastructure.
In conclusion, the expansion of BlackRock’s BUIDL to the Solana blockchain marks a pivotal moment in the evolution of tokenized money market funds, suggesting a bright future for digital assets as traditional finance increasingly converges with blockchain technology.
