Blackrock’s BUIDL reaches $100M in dividends payout

Most crypto enthusiasts would ask what this means for the ecosystem, is this bullish?

Before answering that, here's the gist:

BlackRock’s first tokenized money market fund has paid out $100 million in cumulative dividends since its launch, highlighting the growing real-world use of tokenized securities amid rising institutional adoption.

The milestone for the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) was announced Monday by Securitize, which serves as the fund’s issuer and tokenization partner, overseeing onchain issuance and investor onboarding.

The $100 million milestone is notable because it represents lifetime payouts derived from actual Treasury yields distributed to holders of onchain fund tokens. It demonstrates that tokenized securities can operate at scale while mirroring the core functions of traditional financial products. — Cointelegraph report

BUIDL is a tokenized money market fund from Blackrock, bringing real-world yield, primarily from US treasuries, to onchain markets.

At its peak, BUIDL attracted over $2.8 billion. Right now, $1.73 billion sits within BUIDL and over $100M has been paid out as dividends to holders.

Is this bullish for crypto?

Over the last couple of months, it's been difficult to keep up with anything crypto. Rising focus on artificial intelligence has made it almost impossible to keep eyes on the supposed future layer of finance.

It's felt like not much has happened too.

As a result, the question of if anything is bullish can almost sound stupid because with rising institutional interest in crypto, the trend holds evidence that the industry may be falling into a trap that would make it not much different than traditional finance, today.

Notwithstanding, I'm probably just a little checked out and need to start aggressively optimizing what content I consume to get back my focus on the right industry and projects.

I think what BUIDL has achieved is symbolic of what's possible with blockchains. It's not much of a bullish event in itself, as far as the industry defines bullish events.

That said, we mustn't forget the true value of having real world assets onchain: liquidity.

When we have projects like Blackrock’s BUIDL demonstrating that an investment asset can function with scale on distributed financial networks and generate revenue, we stand to attract more builders and products and that brings more liquidity onchain.

More liquidity means that several decentralized finance projects and ecosystems earn new onboards to push their solutions to.

Tokenized real world assets (RWAs) are crucial for onboarding global markets. One might even argue that mass adoption is significantly dependent on the success of real world assets.

Posted Using INLEO