BlackRock's tokenized BUIDL fund has paid $7M in dividends since March

BlackRock's tokenized United States Dollar Institutional Digital Liquidity Fund (BUIDL), an investment vehicle holding United States Treasury Bills, cash, and repurchase agreements, has paid investors $7 million in dividends since the launch of the investment fund in March of 2024.

According to asset tokenization firm Securitize, BUIDL paid investors $265,400 in dividends in March, $1.21 million in April, $1.67 million in May, $1.82 million in June, and $2.12 million in July.

BlackRock’s tokenized US Treasury fund makes it big 

BlackRock's BUIDL fund surpassed Franklin Templeton’s Franklin OnChain US Government Money Fund (BENJI) in April 2024, becoming the world's largest tokenized government debt investment fund.

BUIDL later recorded $500 million in capital invested into the fund in July 2024. Since the significant milestone, BUIDL has managed to maintain its dominance as the largest tokenized US Treasury investment fund.

The rise of tokenized government debt funds and currency devaluation

Real-world asset tokenization continues to be one of the most prominent sectors in the crypto industry this year, with Goldman Sachs recently announcing plans to introduce three new tokenized products in 2024. Although not much is known about the product offerings, Mathew McDermott, Goldman Sachs' global head of digital assets, hinted that the products would focus on funds in the US and European debt markets.

In July of this year, the total US national debt surpassed $35 trillion, a figure that excludes household consumer debt. Analysts at BitFinex recently told Cointelegraph that they believe the looming debt crisis will act as a catalyst for a return to a sound monetary standard.

The analysts explained that as the US dollar continues to devalue due to unchecked monetary printing from the Federal Reserve and poor fiscal choices from the US government, investors will be driven to embrace neutral, supply-capped assets like Bitcoin (BTC) as a hedge against runaway inflation.

However, others, like former US Speaker of the House Paul Ryan, believe that the demand for the US dollar from stablecoin issuers and other tokenized debt instruments could potentially save the US dollar.