BlackRock's tokenized money market fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), paid out more than $10 million in dividends to investors in May 2025, setting a new monthly record for the fund. This marks the first time any tokenized treasury fund has exceeded the $10 million threshold in a single month.
Launched in partnership with Securitize, BUIDL brings traditional money market exposure—U.S. Treasury bills, cash, and repurchase agreements—onto public blockchains. The fund operates on Ethereum, Solana, Polygon, Avalanche, Arbitrum, Optimism, and Aptos. Ethereum accounted for the vast majority of May dividends at $9,370,969 (over 93% of total). Other chains contributed: Aptos $187,734, Avalanche $185,708, Polygon $104,889, Arbitrum $102,000, Optimism $85,339, and Solana $70,593. The chain-level breakdown underscores Ethereum's dominance while showing growing participation from alternative networks.
High Minimums and Institutional Custody
BUIDL is only available to qualified purchasers—accredited individuals and institutions meeting strict financial criteria. Minimum investments are set at $5 million for individuals and $25 million for institutions. Investors must transact in USD, pass KYC and AML checks, and be whitelisted. Custody is handled by Anchorage, Bitgo, Coinbase, and Fireblocks, with BNY Mellon serving as asset custodian. Securitize manages tokenization, compliance, and investor onboarding.
Daily dividend distributions enable near-instantaneous capital redeployment, showcasing the capital efficiency benefits of tokenization. Since its inception, BUIDL has distributed over $43.4 million in dividends and currently holds $2.91 billion in assets under management, making it the largest tokenized money market fund globally.
Competitive Landscape
While BUIDL leads the pack, the tokenized money market fund space is becoming increasingly crowded. Competitors include Franklin Templeton's BENJI, Superstate's USTB, Ondo Finance's USDY and OUSG, and Circle's USYC. As traditional financial institutions accelerate their exploration of on-chain yield products, the total market for tokenized Treasury funds continues to expand. BUIDL's first-mover advantage and BlackRock's brand recognition position it firmly at the forefront of this emerging asset class.
Analysts believe the strong demand for institutional-grade on-chain yields bodes well for the future of tokenized money market funds. As more blockchain ecosystems mature and regulatory frameworks solidify, these products could serve as a critical bridge between off-chain assets and decentralized finance (DeFi).