BlackRock’s tokenized BUIDL fund has paid out $7 million in dividends since March.
BlackRock's tokenized United States Dollar Institutional Digital Liquidity Fund (BUIDL), an investment vehicle consisting of U.S. Treasury bills, cash and repurchase agreements, has paid investors $7 million in dividends since the fund's March 2024 launch.
BUIDL paid out $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, according to property brokerage Securities.
BlackRock's tokenized US Treasury fund makes it big
BlackRock's BUIDL fund surpassed Franklin Templeton's Franklin Onchain US Government Fund (BENGJ) in April 2024 to become the world's largest government debt investment fund.
BUIDL later raised $500 million in capital which was invested into the fund in July 2024. Since its inception, BUIDL has maintained its dominance as the largest US Treasury investment fund.
Related: Treasury-Backed Stablecoin USDY Launches on Aptos
The rise of tokenized government debt funds and currency failures
Real-world asset tokenization continues to be one of the most popular sectors in the crypto industry this year, with Goldman Sachs recently announcing plans to introduce three new token products in 2024. Although not much is known about the product's offerings, Matthew McDermott, Goldman Sachs' global head of digital assets, hinted that the products will focus on funds that focus on the US and European debt markets.
As of July of this year, the total U.S. national debt exceeded $35 trillion, a figure that does not include household debt. BitFinex analysts recently told Cointelegraph that they believe the looming credit crisis will act as a catalyst for a return to a healthy currency.
The analysts explained that as the US dollar continues to decline due to uncontrolled money printing from the Federal Reserve and weak fiscal choices from the US government, it will push investors to embrace neutral and supply-backed assets like Bitcoin (BTC) as a hedge. Runaway inflation.
However, others, like former US House Speaker Paul Ryan, believe that the US dollar could save the US dollar from demand from Stoltcoin issuers and other tokenized debt instruments.
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