The BlackRock USD Institutional Digital Liquidity (BUIDL) fund distributed more than $2 million in dividends in July, an all-time high for its monthly payouts.

The tokenized fund distributed $2.12 million to investors in July, up roughly 16% from the prior month, Etherscan data shows. To date, BlackRock’s fund has paid out more than $7 million in dividends, with dividend yields increasing each month, a Securitize representative told Decrypt on Thursday. Securitize provides the tokenization platform for the fund.

BUIDL is the company's first tokenized fund issued on a public blockchain, launched on the Ethereum network in March. Since its inception, it has attained a market value of roughly $522 million, Etherscan data shows.

When the BUIDL fund was announced, BlackRock said it would offer investors a number of benefits, including “enabling the issuance and trading of ownership on a blockchain, expanding investor access to on-chain offerings, providing instantaneous and transparent settlement, and allowing for transfers across platforms.”

According to Securitize, BUIDL has the highest-valued tokenized treasury, with a market value of more than $500 million. Other leading on-chain funds include Franklin Templeton's OnChain U.S. Government Money Fund (FOBXX) and Ondo Finance’s USD Yield (USDY) fund.

BUIDL’s growing dividend yields come as institutional investors embrace tokenized money market funds due to their improved liquidity, accessibility, and efficiency compared to traditional funds, according to financial services firm Deloitte. It also comes as DeFi protocols such as Ondo have begun leveraging BUIDL for their derivative products.

Meanwhile, BlackRock is among the leading providers of spot Bitcoin ETFs and spot Ethereum ETFs, the latter of which began trading on July 23. The firm's chief investment officer, Samara Cohen, said earlier this week that there is little chance we will see additional funds based on other cryptocurrencies any time soon.

Source : Decrypt - Aug 1, 2024