BlackRock’s BUIDL Fund Tops $500M as Tokenized Treasury Market Soars

Global
asset
manager
BlackRock’s
BUIDL
token,
issued
in
partnership
Securitize
and
backed
by
U.S.
Treasuries,
has
surpassed
$500
million
market
value
on
Monday,
Ethereum
blockchain
data
by

Etherscan
shows.

It’s
the
first
tokenized
treasury
product
to
achieve
the
milestone,
taking
only
four
months
since
its
debut
in
March.

The
growth
for
BlackRock’s
tokenized
product
has
been
fueled
by
other
decentralized
finance
(DeFi)
protocols
such
as
Ondo
Finance
and

Mountain
Protocol
using
BUIDL
as
a
backing
asset
for
their
own
yield-products.
Digital
asset
brokers
such
as
FalconX
and,
most
recently,
Hidden
Road,
also
added
the
token
to
collateral
assets
for
their
institutional
investor
clients
across
their
networks.

“BUIDL
continues
to
become
the
base
tokenized
asset
for
many
other
innovative
RWA
products
to
be
built
on,”
Carlos
Domingo,
CEO
of
Securitize,
told
CoinDesk
in
an
email.

U.S.
Treasuries
are
at
the
forefront
of
tokenization
of
real-world
asset,
as
digital
asset
firms
and
global
financial
heavyweights
race
to
put
traditional
instruments
such
as
government
bonds,
private
credit
and
funds
on
blockchain
rails,
aiming
to
achieve
faster
settlements
and
operational
efficiencies.

Read
more:



McKinsey
Sees
Just
$2T
of
Tokenized
RWAs
by
2030
in
Base
Case,
With
Broad
Adoption
‘Still
Far
Away’

Many
digital
asset
companies,
investors
seek
these
Treasury-backed
offerings
as
a
low-risk
instrument
where
they
can
park
their
blockchain-based
cash
and
earn
a
stable
yield
without
leaving
the
blockchain
ecosystem.

The
overall
tokenized
treasury
market,
including
BUIDL,
has
more
than
doubled
this
year,
growing
to
$1.8
billion
as
of
June
7
from
$780
million
in
January,
according
to
data
provider

rwa.xyz
shows.

BlackRock’s
offering
is
leading
among
the
tokenized
products,
claiming
roughly
27%
market
share.
Some
major
players
also
enjoyed
significant
inflows
over
the
past
month,
rwa.xyz
shows.
Franklin
Templeton’s
offering
welled
16%
to
$400
million,
while
Hashnote’s
and
OpenEden’s
product
grew
40%
and
89%,
respectively.