- The tokenized fund has distributed almost $7 million in dividends since its inception, and each month’s payout is still rising.
The July dividend distribution from the BlackRock USD Institutional Digital Liquidity (BUIDL) fund exceeded $2 million, marking a record high for the fund’s monthly distributions.
According to Etherscan data, the tokenized fund gave investors $2.12 million in July, an increase of almost 16% over the previous month. As of this writing, BlackRock’s fund has distributed over $7 million in dividends, with monthly dividend yields rising, a Securitize spokesman said on Thursday. The fund’s tokenization platform is provided by Securitize.
Launched on the Ethereum network in March, BUIDL is the company’s first tokenized fund distributed on a public blockchain. According to Etherscan data, it has gained a market value of approximately $522 million since its founding.
BlackRock promised several advantages to investors when the BUIDL fund was first announced. These included facilitating the issuance and trading of ownership on a blockchain, increasing investor access to on-chain offerings, ensuring quick and transparent settlement, and permitting platform transfers.
With a market value of more than $500 million, BUIDL is the highest-valued tokenized treasury, according to Securitize. The USD Yield (USDY) fund from Ondo Finance and the OnChain U.S. Government Money Fund (FOBXX) from Franklin Templeton are two other well-known on-chain funds.
According to financial services company Deloitte, institutional investors are embracing tokenized money market funds because of their increased efficiency, accessibility, and liquidity when compared to traditional funds, which is why BUIDL’s dividend yields are increasing. It also happens at the same time that derivative products made with BUIDL are starting to be used by DeFi protocols like Ondo.
As for spot Ethereum ETFs, which started trading on July 23, and spot Bitcoin ETFs, BlackRock is one of the top suppliers of both. Samara Cohen, the company’s chief investment officer, stated earlier this week that there is unlikely to be any more funds based on other cryptocurrencies anytime soon.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
