BlackRock's BUIDL Fund Puts $2.7B on Ethereum as Stablecoins Hold 0.5% of US Debt, Solana Hits $13.1B

BlackRock's BUIDL fund has allocated approximately $2.7 billion, or 92% of its assets, to the Ethereum blockchain, making Ethereum the dominant platform for the fund's tokenized assets. Other blockchains with significant allocations include Aptos ($53.4 million), Avalanche ($52.8 million), Polygon ($38.4 million), Arbitrum ($32.5 million), Optimism ($26.2 million), and Solana ($20.1 million).

In recent weeks, BlackRock has issued more of its USD stablecoin on Ethereum than the total amount it has issued across all other networks combined, underscoring a strategic focus on Ethereum for digital asset tokenization.

The stablecoin market has seen rapid expansion, with global supply up 14% year-to-date and monthly trading volume reaching a record $1.82 trillion. On Solana, stablecoin supply has reached an all-time high of $13.1 billion, with USDC surpassing $10 billion on the network for the first time.

Stablecoins have become significant holders of US debt, now accounting for nearly 0.5% of the $35 trillion US debt and ranking as the 16th-largest group of holders. This comes as foreign ownership of US debt has declined over the past decade. A recent U.S. Treasury report highlights the growth of the stablecoin market and the potential impact of yield-bearing stablecoins on U.S. bank deposits.

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