The recent introduction of the BlackRock USD Institutional Digital Liquidity Fund contributed to the accumulation of almost $1 billion worth of US Treasurys across many blockchains, including Ethereum, Polygon, and Solana.
Launched on Ethereum on March 20, BlackRock’s product, which goes by the ticker “BUIDL,” currently has a market worth of $244.8 million. Etherscan reports that the fund became the second-biggest tokenized government securities fund last week after four transactions totaling $95 million boosted its value.
Based on data collected by the parent business of 21Shares from a Dune Analytics dashboard, BUIDL is now second only to Franklin Templeton’s 11-month-old Franklin OnChain U.S. Government Money Fund (FOBXX), which has $360.2 million in U.S. Treasurys.
At this point, 17 items have tokenized $1.08 billion worth of U.S. Treasurys, according to the dashboard. The latest $79.3 million contribution to BlackRock’s fund came from Ondo Finance, a company that tokenizes real-world assets; it will enable quick settlements for its own U.S. Treasury-backed token, OUSG. Etherscan reports that the company deposited $95 million in four separate deals.
According to a post by 21.co research analyst Tom Wan on March 27, Ondo Finance currently owns 38% of BUIDL.
One dollar is equal to one BUIDL, and investors get their monthly dividends straight from the company. It debuted on Ethereum with the help of the Securitize protocol.
Given the present high-interest rate climate, tokenized government treasuries are more attractive than stablecoin yields from a risk and return standpoint, according to 21.co’s Dune dashboard.
Blockchain tokenization, as BlackRock CEO Larry Fink recently said, has the potential to improve financial markets. The Boston Consulting Group predicts that this market will reach $16 trillion by 2030.
One slice of the pie is U.S. Treasurys, but there are many more options for tokenization, including equities, real estate, and many more.
Seven hundred million dollars’ worth of all on-chain tokenized real-world assets (RWA) are on Ethereum. Stellar and Polygon, via their tokenization of Franklin Templeton’s FOBXX, have the second- and third-largest market shares of tokenized products, with $358 million and $13 million, respectively.
A number of blockchain-native companies are active in the field, including Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm, and another major asset management business, WisdomTree, is tokenizing RWAs as well.
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