BlackRock’s USD Institutional Digital Liquidity Fund, also known as BUIDL, has attracted over $1 billion in assets under management (AUM) within a year of its debut, according to data from RWA.xyz.
Let’s get real. The money is silly. What is done is done. We need to reload and work together.
Data shows that BlackRock’s flagship tokenized fund saw a 56.4% asset surge in 30 days, crossing $1 billion. Holders increased by nearly 20% to 61. Ethereum holds the lion’s share of $825.4 million, with the remainder distributed across multiple networks like Avalanche, Polygon, Aptos, Optimism, and Arbitrum.
A Billion Means Nothing
Several reports confirmed that crypto protocol Ethena Labs, creators of the USDtb stablecoin, recently allocated $200 million to the BUIDL fund. The large allocation was the key factor that pushed the fund’s total assets above the $1 billion mark.
Arkham Intelligence data shows that $200 million worth of BUIDL tokens were minted on Thursday evening.
Last December, Ethena launched USDtb, a stablecoin designed to complement its existing stablecoin, USDe. USDtb is primarily backed by BlackRock’s BUIDL tokens, holding over 90% of its reserves in BUIDL with additional backing from stablecoins like USDC and USDT.
Designed to maintain a stable price of $1 per token, USDtb functions similarly to traditional stablecoins like USDC and USDT.
Launched in March last year in partnership with Securitize, BUIDL has quickly joined the top tokenized fund tracking on-chain Treasuries. BUIDL is designed for qualified institutional investors, offering them exposure to U.S. dollar yields on-chain.
Apart from Ethena, Ondo Finance also leverages BUIDL in its financial offerings. Ondo Finance has issued its money market fund backed by BUIDL, which accounts for a major portion of BUIDL’s balance.
Tokenized Government Securities Surpass $4.4 Billion
BUIDL’s rapid ascent to over $1 billion in assets is a key driver in the tokenized treasuries market, which has now exceeded $4.4 billion, as tracked by RWA.xyz. Other competing funds from Franklin Templeton, Ondo Finance, and Superstate also play an important role in sector growth.
Franklin Templeton’s Franklin OnChain US Government Money Fund (FOBXX) reported a 16% increase in total asset value in the last 30 days.
Franklin’s FOBXXX was previously one of the largest tokenized funds, but with increased competition from major entities like BlackRock’s BUIDL, it now ranks as the third-largest tokenized money market fund, with a market cap of approximately $689 million.
Hashnote’s USYC fund, which currently holds $868 million in assets, is the second-largest tokenized U.S. Treasury asset. Unlike BUIDL and FOBXXX, the fund’s asset value declined by 24.35% over the past month.
Ondo Finance’s USDY is also another major player in the tokenized treasuries sector. Its market value shot up 53% in the last 30 days, exceeding $592 million. This places it behind BUIDL, USYC, and FOBXXX.
Securitize has partnered with RedStone, a DeFi-focused oracle provider, to enhance the use cases of BUIDL in DeFi. RedStone will deliver price feeds for BUIDL, enabling its integration into money market exchanges and collateralized DeFi platforms.
BlackRock CEO Larry Fink has expressed support for the tokenization of bonds and stocks. He noted its potential to democratize investing by making financial assets more accessible to a wide range of individuals.
Leading crypto company Coinbase is reviving its plans to tokenize its own stock ($COIN) and other securities in the U.S. market. This initiative was first proposed in 2020 but was halted due to regulatory hurdles.
The formation of a new crypto task force by the SEC and shifts in regulatory attitudes under the Trump administration have encouraged Coinbase to reengage with tokenized securities.
These securities offer benefits such as enhanced liquidity, increased transaction efficiency, and improved transparency and security. They can provide investors with voting rights and profit-sharing mechanisms, similar to traditional securities but with the added efficiency of blockchain technology.
