BlackRock’s USD Institutional Digital Liquidity Fund, BUIDL, has achieved a significant milestone by reaching a market cap of $500 million. This achievement comes less than four months after BUIDL’s launch in April, marking it as the first tokenized treasury fund to hit this benchmark.
Rapid Growth and Key Investors
As of now, BUIDL holds $502.8 million worth of tokenized treasuries, as verified by Ethereum block explorer Etherscan. This rapid growth was bolstered by real-world asset tokenization firm Ondo Finance, which increased its holdings of BUIDL to support its OUSG token.
Recent transactions involving BUIDL’s contract address highlight ongoing activity and interest. BlackRock’s BUIDL surpassed the Franklin OnChain U.S. Government Money Fund (BENJI) to become the world’s largest tokenized treasury fund in late April, maintaining this position since then.
BUIDL’s Features and Partnerships
BUIDL is pegged 1:1 with the U.S. dollar and pays daily accrued dividends directly to investors each month through its partnership with Securitize, a real-world asset tokenization platform. Ondo’s OUSG is the largest holder of BUIDL, with $173.7 million invested, while Mountain Protocol uses BUIDL to back its yield-bearing stablecoin, USDM.
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Market Impact and Future Prospects
Currently, there is $1.67 billion worth of tokenized treasury funds onchain, as reported by Dune Analytics. Ethereum leads as the primary blockchain for tokenization, holding more than 75% of these funds, followed by Stellar at 23.9%.
BlackRock CEO Larry Fink has expressed confidence in blockchain tokenization, suggesting it could enhance the efficiency of capital markets. Boston Consulting Group predicts that the market for tokenized assets could reach $16 trillion by 2030, encompassing not just U.S. Treasurys but also stocks, real estate, and other assets.
April 2024 saw the peak of real-world asset transactions on blockchain, though there has been a notable decline since then. Other major players in the asset tokenization space include WisdomTree, Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm.
