According to CoinDesk, BlackRock's BUIDL token, which is issued in partnership with Securitize and backed by U.S. Treasuries, has exceeded a market value of $500 million. This milestone was achieved only four months after its launch in March, making it the first tokenized treasury product to do so.
The token's growth has been driven by other decentralized finance (DeFi) protocols such as Ondo Finance and Mountain Protocol, which use BUIDL as a backing asset for their yield-products. Digital asset brokers like FalconX and Hidden Road have also added token to collateral assets for their institutional investor clients.
Carlos Domingo, CEO of Securitize, stated that BUIDL is becoming the base tokenized asset for many other innovative real-world assets (RWA) products. U.S. Treasuries are leading the way in the tokenization of real-world assets, as digital asset firms and global financial heavyweights strive to put traditional instruments like government bonds, private credit, and funds on blockchain rails. This is done with the aim of achieving faster settlements and operational efficiencies.
Many digital asset companies and investors are seeking these Treasury-backed offerings as a low-risk instrument where they can park their blockchain-based cash and earn a stable yield without leaving the blockchain ecosystem.
The overall tokenized treasury market, including BUIDL, has more than doubled this year, growing to $1.8 billion as of June 7 from $780 million in January. BlackRock's offering is leading among the tokenized products, claiming roughly 27% market share. Other major players have also seen significant inflows over the past month. Franklin Templeton's offering increased 16% to $400 million, while Hashnote's and OpenEden's products grew 40% and 89%, respectively.