BlackRock’s tokenized fund, BUIDL, has crossed the $1 billion threshold, cementing its position as the largest blockchain-based fund tracking U.S. Treasuries. Launched less than a year ago on March 20, 2024, in partnership with Securitize on the Ethereum network, the BlackRock USD Institutional Digital Liquidity Fund has outpaced competitors like Franklin Templeton’s OnChain U.S. Government Money Fund, signaling a robust appetite for tokenized real-world assets (RWAs). The milestone, reported today across crypto news outlets and X posts, underscores a pivotal moment for blockchain’s integration into traditional finance.
BUIDL, designed for institutional investors, invests entirely in cash, U.S. Treasury bills, and repurchase agreements, maintaining a stable $1 per token value. Investors earn yields distributed monthly as additional tokens, leveraging blockchain for 24/7 trading and instant settlement. Since its debut with a modest $5 million seed investment, the fund has ballooned, fueled by significant inflows from players like Ondo Finance, which holds a substantial stake after depositing $95 million last year to back its OUSG token. By July 2024, BUIDL had already topped $500 million, and its latest $1 billion mark reflects a near doubling of assets in just eight months.
The tokenized Treasury market has grown alongside it. Data from rwa.xyz pegs the sector at $4 billion as of January 2025, up from $1.3 billion in April 2024, with Ethereum hosting the lion’s share at over 75%. BlackRock’s dominance—capturing roughly a quarter of this market—stems from its strategic expansion beyond Ethereum to five additional blockchains (Aptos, Arbitrum, Avalanche, Optimism’s OP Mainnet, and Polygon) in November 2024. This move broadened access, lowered fees on select networks, and drew in diverse institutional players, from DeFi protocols to digital asset brokers like FalconX and Hidden Road, who now accept BUIDL as collateral.
Competitive Landscape
Franklin Templeton’s FOBXX, once the leader with $360 million in April 2024, now trails at over $400 million, per rwa.xyz data from July. Ondo Finance’s USDY fund sits third with $281 million, while Hashnote’s USYC briefly overtook BUIDL in total assets earlier this year before settling behind at an unspecified figure. BUIDL’s rapid ascent—hitting $375 million in just six weeks last April—overtook Franklin’s year-old offering, a feat analysts attribute to BlackRock’s brand, institutional trust, and partnerships like Ondo’s, which alone accounts for a significant chunk of its holdings.
The fund’s growth mirrors a broader tokenized Treasury boom, which swelled from $100 million in early 2023 to $2 billion by August 2024. Analysts like Tom Wan of 21Shares predicted a $1 billion market soon after BUIDL’s launch; today’s figures quadruple that forecast. Boston Consulting Group’s 2023 estimate of a $16 trillion tokenization market by 2030 now feels less speculative, with U.S. Treasuries—low-risk and liquid—serving as the gateway asset.
Why It Matters
Tokenization promises faster settlements, greater transparency, and round-the-clock access, benefits BlackRock has capitalized on. BUIDL’s 4.5% annual yield, as reported by RWA.xyz in January, appeals to investors seeking stable returns without leaving blockchain ecosystems. Its 46 token holders—ranging from Ondo to Mountain Protocol, backing its USDM stablecoin—illustrate its role as a foundational asset in DeFi and TradFi convergence.
Yet, challenges linger. The sector’s $4 billion remains a sliver of the $27 trillion Treasury market, hinting at untapped potential but also regulatory hurdles. BUIDL’s unregistered status under the Securities Act limits it to qualified U.S. investors, and blockchain risks—market volatility, security breaches—persist despite its robust ecosystem, including custodians like BNY Mellon and Anchorage Digital. Still, BlackRock’s multi-chain expansion and $17.2 million in dividends paid by January suggest resilience.
Looking Forward
BUIDL’s $1 billion milestone isn’t an endpoint. As tokenized assets diversify beyond Treasuries into stocks and real estate, BlackRock’s first-mover advantage could shape the space. Injective’s tokenized index launch today hints at further innovation, while competitors like Franklin Templeton and emerging players eye their own breakthroughs. For now, BUIDL stands as a testament to blockchain’s slow but steady march into the financial mainstream, with BlackRock steering the charge.
Disclaimer: TrueToCrypto.com (the “Website”) is for general informational purposes only and is obtained from independent sources that are believed to be reliable. However, TrueToCrypto.com, its owners, affiliates, officers, employees, and agents (collectively, “We,” “Us,” or “Our”) make no representations or warranties, express or implied, as to the accuracy, completeness, timeliness, reliability, or suitability of the information contained on or accessed through this Website. Further read Disclaimer.
