BlackRock's BUIDL: A New Way to Earn on Crypto

A New Era in Blockchain Finance

BlackRock's BUIDL fund has achieved a significant milestone, distributing approximately $100 million in dividends since its launch in March 2024. Unlike traditional crypto investments, this fund operates more like a traditional money market fund but leverages blockchain technology.

Growth and Regulation

• Fund Value: Over $2 billion
• Investments: Focused on U.S. Treasuries and cash equivalents
• Technology: Regulated and tokenized on public blockchains
• Networks: Initially launched on Ethereum, now expanded to other networks

The fund's success highlights the growing demand for safe, regulated crypto investment options.

Why It Matters

• Scale: The $100 million payout demonstrates that blockchain finance can operate at scale.
• Popularity: Tokenized money market funds are gaining traction as a safe alternative to stablecoins for institutional investors.

Risks and Challenges

Despite its success, regulators have concerns about the operational resilience of such funds during market downturns. However, BUIDL continues to thrive, offering investors the ability to hold fund shares as blockchain tokens and receive payouts directly on the blockchain.

Beyond Dividends

BUIDL's utility extends beyond earnings:

• Backs stablecoins like Ethena's USDtb
• Used as collateral in trading

This positions BUIDL at the intersection of traditional finance and blockchain innovation.