-
BlackRock’s
Ethereum-based
tokenized
fund
BUIDL
enjoyed
strong
demand
in
its
first
week,
attracting
$245
million
in
deposits. -
Ondo
Finance’s
$95
million
transfer
bolstered
BUIDL’s
growth. -
U.S.
Treasuries
are
a
gateway
for
real-world
asset
tokenization
efforts,
as
crypto
firms
and
global
financial
heavyweights
race
to
put
traditional
instruments
such
as
bonds
on
blockchain
rails.
BlackRock’s
first
tokenized
asset
fund
is
off
to
a
strong
start,
garnering
a
significant
market
share
of
the
blockchain-based
tokenized
U.S.
Treasury
market
just
a
week
following
its
debut.
Blockchain
data
shows
that
BlackRock’s
BUIDL
raked
in
$245
million
of
deposits
as
of
Wednesday.
Its
strong
introduction
propelled
the
fund
into
second
place
among
peers,
trailing
only
Franklin
Templeton’s
Franklin
OnChain
U.S.
Government
Money
Fund
(FOBXX),
which
has
$360
million
of
deposits,
according
to
rwa.xyz
data.
BlackRock
was
the
latest
high-profile
entrant
to
crypto’s
tokenization
of
real-world
assets
(RWA)
boom,
with
digital
asset
firms
and
global
banks
such
as
HSBC,
JPMorgan
and
Citigroup
exploring
ways
to
use
blockchain
technology
for
traditional
financial
instruments
such
as
bonds,
credit,
gold
or
even
diamonds
in
pursuit
of
faster
settlements
and
increased
efficiency.
U.S.
Treasuries
are
a
gateway
for
tokenization
efforts
as
a
low-risk,
well-known
instrument
where
investors
can
park
their
on-chain
cash
and
earn
stable
yield
without
leaving
the
blockchain
ecosystem.
The
tokenized
Treasury
market
has
mushroomed
over
the
past
year,
growing
nine-fold
from
$100
million
in
early
2023.
“With
the
growth
of
BUIDL,
we
are
likely
to
see
a
$1
billion
tokenized
U.S.
Treasury
market
very
soon,”
said
Tom
Wan,
analyst
at
digital
asset
manager
21Shares.
Read
more:
U.S.
Treasuries
Spearhead
Tokenization
Boom
BlackRock’s
BUIDL
token
on
the
Ethereum
blockchain,
created
with
asset
tokenization
platform
Securitize,
represents
investment
in
a
fund
that
holds
U.S.
Treasury
bills
and
repo
agreements.
Its
price
is
pegged
to
$1,
and
holders
receive
a
yield
from
the
underlying
assets
paid
in
the
token.
The
offering
is
targeted
to
large
institutional
investors.
RWA
tokenization
platform
Ondo
Finance
moved
$95
million
of
funds
to
BUIDL
to
shift
its
own
Treasury
bill
token’s
asset
backing
from
a
less
desirable
exchange-traded
fund
to
a
blockchain-based
one,
allowing
instant
settlement
and
around-the-clock
subscriptions
and
redemptions.