BlackRock’s BUIDL Expands to Solana – Tokenized Money Market Fund Aims for $2 Billion

BlackRock, the world’s largest asset manager, continues its expansion into the cryptocurrency space. The company announced on Tuesday, March 25th, that its blockchain-based money market fund “BUIDL” is now available on the Solana blockchain. This marks BlackRock’s entry into one of the fastest-growing Ethereum alternatives and further expands its presence in the crypto sector.

BUIDL combines traditional money market funds, typically used for short-term liquidity investments, with the benefits of blockchain technology. Originally launched on Ethereum, the fund has since seen significant growth. According to Securitize, BlackRock’s technology partner, invested assets already total $1.7 billion. BUIDL is forecast to exceed the $2 billion mark by early April.

Michael Sonnenshein, COO at Securitize, told Fortune, “We’re redesigning money market funds and solving problems inherent in the traditional format.” Traditionally, these funds are only tradable during regular business hours. In contrast, crypto markets are open 24/7, allowing investors to enter or exit positions at any time.

BlackRock, the world’s largest asset manager, continues its expansion into the cryptocurrency space

The volatility of the crypto markets is increasing the need for stable and high-yield investment alternatives. While investors have so far turned to stablecoins such as USDT or USDC, these do not offer interest. BlackRock and other traditional financial giants such as Franklin Templeton and Figure Markets are therefore offering blockchain-based, interest-bearing products. Figure Markets recently received SEC approval for an interest-bearing stablecoin.

Lily Liu, President of the Solana Foundation, highlights the benefits of blockchain: “Our vision for on-chain finance is that investors can do more with their assets on the blockchain than if they were simply sitting in a traditional brokerage account.”

With its expansion to Solana, BlackRock is pursuing a clear strategy for the broader adoption of tokenized financial products. BlackRock launched a spot Bitcoin ETF in January 2024, which has since attracted nearly $40 billion in investor capital. CEO Larry Fink sees ETFs as merely the first step in a profound transformation of the financial markets: “The next step will be the tokenization of all financial assets.”

With the launch of BUIDL on Solana, BlackRock is strategically positioning itself at the forefront of this development and further driving the adoption of digital assets.

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(Featured image by Hitesh Choudhary via Unsplash)

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