BlackRock's Tokenized Treasury Fund BUIDL Yields $7 Million in Dividends

Since its launch in March 2024, BlackRock's tokenized United States Dollar Institutional Digital Liquidity Fund (BUIDL) has paid investors a total of $7 million in dividends. The fund invests in U.S. Treasury Bills, cash, and repurchase agreements.

According to Securitize, the firm responsible for the asset tokenization, BUIDL distributed $265,400 in dividends in its inaugural month. This amount surged to $1.21 million in April, $1.67 million in May, $1.82 million in June, and reached $2.12 million by July.

In April 2024, BUIDL overtook Franklin Templeton’s Franklin OnChain US Government Money Fund (BENJI), becoming the world's largest tokenized government debt investment fund. By July 2024, BUIDL had attracted $500 million in capital, cementing its position as the leading tokenized US Treasury investment vehicle.

The rise of tokenized government debt funds reflects a growing trend in the crypto industry towards real-world asset tokenization. Goldman Sachs has also announced plans to introduce three new tokenized products in 2024, focusing on funds in the US and European debt markets. Mathew McDermott, Goldman Sachs' global head of digital assets, hinted at these new offerings but provided few details.