Tokenized money market funds demonstrate real-world utility as onchain Treasury yields reach nine-figure payouts.
Tokenized finance has reached a new milestone as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) surpasses $100 million in cumulative payouts, offering tangible evidence that blockchain-based financial products can operate at institutional scale. The achievement reflects growing confidence among large investors in tokenized real-world assets backed by traditional financial instruments.
BlackRock BUIDL Payouts Highlight Real Treasury Yield Distribution
Launched in March 2024, BUIDL is a tokenized money market fund backed by US Treasurys, repurchase agreements, and cash equivalents. Investors hold digital tokens pegged to the US dollar and receive dividend distributions directly onchain, mirroring how traditional money market funds generate yield.
The $100 million milestone represents actual Treasury income paid to token holders, not incentives or token emissions. This distinction underscores the maturity of tokenized securities as functional financial products rather than experimental blockchain tools.
Originally issued on Ethereum, BUIDL has since expanded to six additional blockchains, including Solana, Avalanche, Optimism, and Aptos. The fund’s total value surpassed $2 billion earlier this year, peaking at over $2.8 billion in assets during October, reflecting strong institutional demand for yield-bearing, onchain cash alternatives.
Tokenized money market funds are becoming one of the fastest-growing segments of onchain real-world assets. Their appeal lies in faster settlement, transparent ownership, and programmable dividend payments. These efficiencies are drawing interest from asset managers seeking modernized financial infrastructure.
However, as adoption accelerates, regulators and global institutions have cautioned that operational and liquidity risks must be carefully managed, particularly as tokenized funds begin playing a larger role as collateral within digital markets.
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