BlackRock’s Tokenized Money Market Fund Hits $100M in Dividend Payouts
What Did BlackRock’s Tokenized Fund Achieve?
BlackRock’s first tokenized money market fund has paid out more than $100 million in cumulative dividends since its launch, offering a clear data point on how tokenized securities are being used beyond pilots and proofs of concept. The milestone was confirmed by Securitize, which acts as the fund’s issuer and tokenization partner.
The BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, launched in March 2024 and was first issued on ETH. The fund invests in short-term, US dollar–denominated instruments such as Treasury bills, repurchase agreements, and cash equivalents. Investors hold tokens pegged to the dollar and receive dividend payments directly onchain, reflecting income from the underlying portfolio.
The $100 million figure represents lifetime distributions sourced from real Treasury yields, paid to token holders without relying on offchain reconciliation. For market participants tracking real-world asset adoption, the number matters less for its size than for what it shows: tokenized funds can deliver familiar financial outcomes using blockchain rails.
Investor Takeaway
Why Is BUIDL viewn as a Breakout Example?
Since launch, BUIDL has expanded well beyond its original chain. later than begining on ETH, the fund added support for Solana, Aptos, Avalanche, Optimism, and other networks. This multi-chain footprint reflects how institutional issuers are testing liquidity and access across diverse blockchain environments rather than committing to a single stack.
Adoption has followed. Earlier this year, the value of assets in BUIDL passed $2 billion. At its peak in October, the fund held more than $2.8 billion. That scale places it among the largest tokenized investment products to date and well ahead of most onchain funds that remain below institutional size thresholds.
Operational features have played a role. Settlement occurs quicker than in traditional fund structures, ownership records are visible onchain, and distributions are programmable rather than processed through layers of administrators. For large asset managers, those efficiencies are increasingly part of the discussion as they evaluate .
How Do Tokenized Money Market Funds Fit Into the Broader Market?
have become one of the quickest-growing segments of the onchain RWA space. Their appeal lies in offering cash-like returns while keeping assets within a blockchain environment that supports composability, instant settlement, and integration with other digital systems.
Some observers view these products as a counterweight to stablecoins. In July, J.P. Morgan strategist Teresa Ho argued that preserve the role of “cash as an asset,” even as regulatory changes were expected to speed up stablecoin usage. The view reflects a divide in how institutions approach digital dollars: stablecoins for payments and transfers, tokenized funds for yield-bearing cash management.
The distinction matters for balance sheets. Unlike stablecoins, tokenized money market funds expose investors to short-duration assets that generate income. That makes them closer to traditional , but with onchain settlement and distribution.
Investor Takeaway
What Risks Are Regulators and Institutions Watching?
Growth has also brought scrutiny. The that tokenized money market funds could introduce operational and liquidity risks, particularly if they become a major source of collateral in digital markets. Concerns include how redemptions would behave under stress and how onchain liquidity might interact with offchain asset sales.
BUIDL’s dividend milestone does not resolve those questions, but it does anchor the debate in real numbers. Tokenized funds are no longer theoretical. They are paying out cash, holding billions in assets, and attracting sustained institutional interest.
As asset managers weigh how far to take tokenization, BUIDL stands as one of the clearest examples that onchain securities can mirror traditional products while operating on a diverse set of rails.
