Recently, BlackRock, through its tech partner Securitize, announced the expansion of its BUIDL fund on the Solana blockchain.
Launch on Solana
Securitize announced that BlackRock's BUIDL fund has added Solana to its assets. This move follows the launch of BUIDL on Ethereum in March 2024 and signifies BlackRock's support for the development of the crypto industry. Now, investors can place their BUIDL funds on seven blockchains, including Solana.
Global Push for Tokenization
BlackRock's decision highlights the growing trend in the financial sector to embrace tokenization. This involves bringing financial assets such as bonds and stocks onto the blockchain. Notably, the RWA sector recently surpassed $10 billion. Securitize and BlackRock aim to eliminate the limitations of traditional money markets, which have restricted trading hours — unlike crypto markets, which are open around the clock.
Yield-Bearing Blockchain Products
Traders often use stablecoins like USDC and USDT, which do not yield income. Therefore, companies like BlackRock are launching yield-bearing products on the blockchain. Other companies offering similar products include Franklin Templeton and Figure Markets. These products allow investors to earn income while avoiding the volatility of traditional markets.
The expansion of the BUIDL fund to Solana illustrates BlackRock's commitment to innovations in digital assets, contributing to the continued development of the crypto industry and the tokenization of financial instruments.
