BlackRock’s tokenized fund, BUIDL, has reached a significant milestone by crossing a market value of $502.8 million, as reported by Hope from CoinMarketCap. Launched in March on the Ethereum blockchain in collaboration with Securitize Markets, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) provides institutional investors with the opportunity to earn yields on tokenized U.S. Treasuries.
According to Etherscan data, BUIDL has become the first tokenized fund to surpass the half-billion-dollar mark within just over four months of its inception, establishing itself as the largest fund of its kind. Data from rwa.xyz confirms this achievement, noting that the Franklin Templeton OnChain U.S. Government Money Fund (FOBXX), which has been available since April 2021, now ranks second with over $400 million in managed assets.
Ondo Finance’s USD Yield fund (USDY), launched last August, is currently the third most valuable tokenized fund, holding $281 million in assets under management. The rapid growth of BUIDL underscores the increasing interest and investment in tokenized treasuries, a market that has expanded by over 130% since the beginning of the year and is now valued at more than $1.8 billion.
Overall, the market for real-world assets (RWA) is currently valued at $12.45 billion, with industry experts predicting further growth. Last month, RWA emerged as one of the best-performing sectors, driven by projects like Ondo Finance, Clearpool, and Maple Finance, which saw their native tokens’ fully diluted market cap increase by 53% in May alone.
BlackRock CEO Larry Fink has been vocal about the transformative potential of tokenization for financial assets. In an interview with Bloomberg earlier this year, Fink stated, “We could customize strategies through tokenization that fits every individual, we would have instantaneous settlement. We believe this is a technological transformation for financial assets.”
This achievement highlights the growing acceptance and integration of blockchain technology in traditional finance, as well as the potential for tokenization to revolutionize the management and trading of financial assets. In the recently published Who’s Who 2024 Guide, our Chief Editor, Michael Juul Rugaard expanded on this recent trend of institutional adoption by highlighting the initiative made by BlackRock, titled “Thank you, Mr. Fink”, you can read the article here.
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