BlackRock has expanded its tokenized fund to the Solana platform, making Solana the seventh blockchain for the fund.
Expansion to Solana
The tokenized fund named BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is now available on the Solana blockchain. Previously, the fund was operating on Ethereum and five other blockchains.
Benefits of Tokenized Funds
BUIDL provides crypto traders access to a yield-bearing product that behaves like cash while remaining entirely on-chain. Unlike stablecoins like USDT and USDC, which don't earn interest, this fund offers yield from real-world assets.
Outlook and Competition
BlackRock is not the only company developing similar products. Franklin Templeton and Figure Markets are also advancing similar initiatives. The growing trend of tokenized funds is due to the increased functionality and usability of on-chain assets compared to traditional brokerage accounts.
BlackRock's expansion to Solana highlights the growing interest in tokenized financial products, marking a step towards increased functionality and accessibility for cryptocurrency investors.
