tl;dr
Solana (SOL) is up 19% in the last week as reports indicate that BlackRock is moving its blockchain-based money market fund from Ethereum (ETH) to Solana. The $1.7 billion BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is being added to the Solana blockchain. BUIDL, which utilizes tradit...
Solana (SOL) has surged 19% in the past week following reports that BlackRock is transferring its blockchain-based money market fund from Ethereum (ETH) to Solana. The $1.7 billion BlackRock USD Institutional Digital Liquidity Fund (BUIDL) is now being added to the Solana blockchain. BUIDL, which integrates traditional money market funds with blockchain payment properties, is projected to exceed $2 billion in cash and Treasury bills by early April. This decision aligns with BlackRock's long-term digital asset strategy, demonstrating the company's commitment to the tokenization of financial assets.
This move positions Solana as the seventh blockchain compatible with BUIDL, offering 24/7 trading and expanded asset utility on-chain. With its price currently at $145, Solana's growth on the news highlights its potential as a formidable competitor to Ethereum. BUIDL, launched a year ago, enables investors to store cash in the near term and earn yield, combined with blockchain payment features. Solana's compatibility with BUIDL solidifies its position as a prominent blockchain for tokenized money market funds, especially after its initial launch on Ethereum.
BlackRock's technology partner, Securitize, anticipates that the fund will exceed $2 billion in cash and Treasury bills by early April. Michael Sonnenshein, COO at Securitize, emphasized the innovative nature of BUIDL, stating, "We’re making unboring. We are advancing and leapfrogging some of the quote-unquote deficiencies that money markets may have in their traditional formats." Notably, one advantage of BUIDL over traditional money market funds is its 24/7 trading capability.
Lily Liu, president of the Solana Foundation, articulated the value proposition of on-chain finance, highlighting the enhanced possibilities for managing assets on-chain compared to traditional brokerage accounts. BUIDL forms a crucial part of BlackRock’s long-term digital asset strategy, which encompasses its spot-Bitcoin (BTC) exchange-traded fund (ETF). BlackRock CEO Larry Fink envisions the "tokenization of every financial asset" as the future of finance.