BlackRock’s BUIDL fund represents the most significant institutional endorsement of tokenised assets to date. With over $1.5 billion in assets under management, BUIDL is the largest on-chain money market fund.
How It Works
BUIDL is an SEC-registered money market fund invested in US Treasuries, cash, and repurchase agreements. Each token maintains a $1 NAV, with daily yield accruals distributed to holders.
Fee Structure
At just 0.02%, BUIDL’s fee is significantly lower than comparable products. This is possible due to BlackRock’s scale and existing infrastructure.
UK Accessibility
Currently, BUIDL is restricted to US institutional investors. UK institutions may access it through existing ISDA agreements, but retail investors have no direct access. The ecosystem benefits indirectly through:
- Price discovery and liquidity benchmarks
- Competitive pressure on fees
- Validation of the asset class
- Potential for future UK-domiciled equivalents
Verdict
BUIDL is the institutional gold standard. For UK retail investors, it serves as a validation signal and a benchmark for evaluating alternative tokenised treasury products from Ondo, Superstate, and others.
Disclaimer: BUIDL is not available to UK retail investors. This review is for educational purposes.