Key Points
- The announcement was made by BlackRock’s tech partner, Securitize.
- Crypto investors can place their BUIDL funds on seven blockchains, including Solana.
According to the latest reports, BlackRock continues to support crypto adoption, with an expansion of its BUIDL fund to Solana.
The announcement was made by Securitize, BlackRock’s technology partner.
BUIDL is BlackRock’s first tokenized fund, launched on Ethereum in March 2024. Investors can subscribe via Securitize, a firm in which BlackRock invested in to support transformation for digital asset infrastructure.
BlackRock is the world’s largest asset manager with more than $10 trillion in AUM as of 2023.
BUIDL Expands To Solana
Securitize made the announcement , saying that BlackRock added its blockchain-based money market fund to Solana, which they called the fastest-growing Ethereum challenger.
This move comes about a year since the launch of BUIDL – BlackRock’s USD Institutional Digital Fund, which takes traditional money market funds, serving as short-term places to park cash and earn yield, and combines it with the ledger and payment properties of blockchain technology.
BUIDL attracted a high inflow of capital, surpassing $1 billion in AUM this month, according to a Securitize official release . Predictions from Securitize say that BUIDL will cross $2 billion in early April.
From now on, crypto investors can place their BUIDL funds on seven blockchains, including Solana.
A Global Push for Tokenization
BlackRock’s move comes amidst rising efforts in the financial sector to embrace tokenization. The term describes taking financial assets that are off-chain, such as paper bonds and stocks, and recording their existence on-chain.
Just recently, we revealed that the RWA sector surpassed an important milestone of $10 billion.
The COO of Securitize told Fortune that the firm, together with BlackRock, is advancing to eliminate deficiencies that money markets have in their traditional formats.
Traditional markets only allow traders to buy and sell money market funds during business hours, but crypto markets are open nonstop, and investors need to quickly enter or exit positions. The crypto markets are also volatile, with traders needing a safe haven to protect themselves from sudden moves.
So far, traders have used stablecoins which allow traders to skip the crypto/fiat conversions. On the other hand, stablecoins like USDC and USDT don’t provide holders yield, and that’s why firms like BlackRock launched interest-bearing products on the blockchain.
Other firms that launched such products include Franklin Templeton and Figure Markets.
Lily Liu, President of the Solana Foundation, said that their vision for why on-chain finance adds more value is that people can do more things with those assets on-chain rather than in their brokerage accounts.
BlackRock boosts crypto adoption globally, with its latest moves in Europe .
