According to TechFlow, the tokenized bond market has reached a market value of $2 billion in just 151 days. BlackRock is the main driving force, with its BUIDL fund reaching a market value of $503 million, making it the largest single fund.
The success of the BUIDL fund has attracted more investors to pay attention to tokenized treasury bonds. In contrast, Franklin Templeton's FOBXX and Ondo Finance's USDY funds have grown less, with market capitalizations of $425 million and $364 million, respectively.
Tokenized Treasury bonds digitize U.S. Treasury assets and provide seamless transactions on blockchains such as Ethereum and Solana, simplifying transactions and lowering market entry barriers.
Tokenization brings liquidity, and investors can redeem funds around the clock and exchange them for stablecoins through smart contracts. Analysts expect the market size to exceed $3 billion by the end of the year, but it needs to cope with macroeconomic and regulatory challenges.