BlackRock, the world’s largest asset manager with $11.6 trillion in assets under management (AUM), has expanded its asset tokenization initiative to Solana. The move, facilitated by BlackRock’s technological partner Securitize, makes the BlackRock USD Institutional Digital Fund (BUIDL) accessible on Solana’s blockchain.
According to an exclusive report by Fortune, BUIDL, a blockchain-based money market fund, is now available on its seventh network. Previously, it was accessible on Ethereum, Optimism, Aptos, Avalanche, Arbitrum, and Polygon. The expansion aligns with BlackRock’s vision of integrating traditional finance with decentralized blockchain networks.
$1.7B Tokenized Treasury Funds Enter Solana’s Ecosystem
Launched in March 2024, BUIDL has accumulated $1.7 billion in AUM, consisting of cash and U.S. Treasury bills. Market analysts anticipate that the fund will reach $2 billion by April, reflecting the growing demand for tokenized financial instruments.
Solana’s integration marks a strategic move, given its reputation for high-speed transactions and low fees—two factors that challenge Ethereum’s dominance. Institutional investors are increasingly drawn to Solana’s efficiency, evidenced by Franklin Templeton’s February launch of the Franklin Onchain U.S. Government Money Fund (FOBXX) on Solana. The $694 billion fund is now the third-largest blockchain-based money market fund, trailing only BUIDL and Hashnote’s USYC fund.
Michael Sonnenshein, COO of Securitize, emphasized the significance of tokenized treasuries, stating that blockchain technology makes them “unboring.” He highlighted the 24/7 accessibility and increased efficiency of on-chain investments compared to traditional financial markets.
BlackRock’s Expanding Crypto Ambitions
BlackRock’s move into Solana is the latest in its broader crypto expansion strategy. In 2023, the asset manager launched Bitcoin and Ethereum spot exchange-traded funds (ETFs), with its Bitcoin ETF seeing massive adoption. On Tuesday, BlackRock further extended its Bitcoin exchange-traded product (ETP) to Europe, listing it on Xetra, Euronext Paris, and Euronext Amsterdam.
Also Read: BlackRock Launches Bitcoin ETP in Europe, Fueling Institutional Crypto Adoption
CEO Larry Fink has repeatedly championed asset tokenization as the future of investment, signaling BlackRock’s commitment to revolutionizing traditional finance through blockchain technology. With its latest expansion to Solana, BlackRock continues to position itself at the forefront of the digital asset transformation.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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