Solana (SOL) is green on the day on reports that BlackRock is moving its blockchain-based money market fund onto the Ethereum (ETH) competitor’s network.
Fortune reports that the world’s largest asset manager is adding its $1.7 billion BlackRock USD Institutional Digital Liquidity Fund (BUIDL) to the Solana blockchain.
[adinserter block="1"]Solana is trading for $145 at time of writing, up nearly 19% in the last week.
Launched a year ago, BUIDL uses traditional money market funds, which investors use to store cash in the near term and earn yield on it, combined with blockchain payment properties.
Solana is now the seventh blockchain compatible with the tokenized money market fund BUIDL, after its initial launch on Ethereum.
BlackRock’s technology partner, Securitize, says the fund is expected to exceed $2 billion in cash and Treasury bills by early April.
Says Michael Sonnenshein, COO at Securitize,
“We’re making [money market funds] unboring. We are advancing and leapfrogging some of the quote-unquote deficiencies that money markets may have in their traditional formats.”
One benefit BUIDL offers over traditional money market funds is 24/7 trading.
Says Lily Liu, president of the Solana Foundation,
“Our vision for why on-chain finance adds more value is because you can do more things with those assets on chain than you could if [they’re] sitting in your brokerage account.”
BUIDL is part of BlackRock’s long-term digital asset strategy, which includes its spot-Bitcoin (BTC) exchange-traded fund (ETF).
According to BlackRock CEO Larry Fink, the future of finance includes the “tokenization of every financial asset.”
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