Solana’s native token, SOL, is experiencing a surge in value today amid news that financial giant BlackRock is integrating its blockchain-based money market fund with the Solana network, a key competitor to Ethereum.
According to a report in Fortune, BlackRock, recognized globally as the premier asset management firm, is expanding the ecosystem for its USD 1.7 billion Institutional Digital Liquidity Fund, known as BUIDL, by incorporating the Solana blockchain.
Currently valued at $145, Solana has seen a substantial appreciation of almost 19% in the last week alone.
The BUIDL fund, established a year ago, merges the principles of traditional money market funds.
Instruments utilized by investors for short-term capital preservation and yield generation with the cutting-edge transactional capabilities inherent in blockchain technology.
Solana’s integration marks the seventh blockchain platform to support the BUIDL tokenized money market fund, which initially debuted on the Ethereum network.
BlackRock Digital Asset Strategy Expands
Securitize, BlackRock’s technology partner in this venture, anticipates that the fund’s total holdings, comprising cash and Treasury bills, will surpass $2 billion in early April.
Michael Sonnenshein, COO of Securitize, commented on this innovative financial product, stating that their objective is to inject new dynamism into traditional money market funds, overcoming perceived limitations associated with their conventional structures.
He emphasized that they are innovating beyond the standard characteristics of these funds.
A significant advantage offered by BUIDL compared to conventional money market funds is the provision of continuous, 24/7 trading accessibility.
Lily Liu, President of the Solana Foundation, further explained the broader strategic rationale, highlighting that the core value proposition of on-chain finance lies in the enhanced utility of assets when managed within a blockchain framework, offering far greater flexibility than if these assets were confined to traditional brokerage accounts.
The BUIDL initiative forms part of BlackRock’s comprehensive and forward-looking strategy in the digital asset domain, which also includes their recently launched spot-bitcoin exchange-traded fund (ETF).
BlackRock CEO Larry Fink has publicly articulated his belief that the future trajectory of finance will fundamentally involve the “tokenization of every financial asset,” underscoring the strategic importance of initiatives like BUIDL.
Also Read: BlackRock Tokenized Treasury Fund Expands to Solana
