BlackRock’s USD Institutional Digital Liquidity (BUIDL) fund paid out more than $2 million in July, its highest monthly dividend ever.
According to Etherscan data, BlackRock paid $2.12 million to investors in July, an increase of 16% from June. The fund has paid out more than $7 million in dividends, with returns rising every month since its inception.
BlackRock’s BUIDL Fund Achieves Record Dividend Payout
BUIDL, BlackRock’s first tokenized fund launched on the Ethereum blockchain in March, has seen remarkable success. With a market capitalization of approximately $522 million, BUIDL has quickly surpassed other existing funds such as Franklin Templeton’s Franklin On-Chain U.S. Government Money Fund (BENJI).
Deloitte has emphasized the increasing preference of institutional investors for tokenized money market funds like BUIDL. These funds offer enhanced liquidity, accessibility, and efficiency compared to traditional options. Additionally, decentralized finance protocols like Temperature leverage BUIDL for derivatives.
Significant Growth in Tokenized Financial Markets
The tokenized U.S. Treasury market witnessed substantial growth in 2024, with the industry’s total value surging from $726.23 million to $1.88 billion. BlackRock’s BUIDL and Franklin Templeton’s FOBXX have played pivotal roles, boasting market capitalizations of $522.81 million and $414.3 million, respectively.
Analysts anticipate continued growth in the tokenized financial market, projecting a market value of $3 billion by the end of 2024. This growth is fueled by the demand for stable returns within blockchain-based initiatives like decentralized autonomous organizations (DAOs) and decentralized finance (DeFi) projects. In the long term, McKinsey forecasts the market for tokenized financial assets to reach $2 trillion by 2030.
The Future of Tokenized Assets and RWA Tokenization
Risk-weighted asset tokenization involves transforming physical assets such as bonds, real estate, and debt into digital tokens on a blockchain network. These digitized assets offer enhanced transparency, liquidity, and accessibility within the decentralized finance ecosystem. Hamilton co-founder and CEO Mohamed Elkastawi highlights the potential for innovative opportunities through RWA tokenization.
“Tokenized assets are expected to bring greater transparency, liquidity, and accessibility to existing financial markets. Enabling fractional ownership and 24/7 liquidity will further democratize access to quality investment opportunities.”
BlackRock continues to lead in the realm of Bitcoin and Ethereum spot ETFs, with the latter commencing trading on July 23. Chief Investment Officer Samara Cohen mentioned the potential for additional cryptocurrency-based funds in the near future.
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