The BUIDL token, issued by global asset management company BlackRock in partnership with Securitize and backed by U.S. Treasuries, surpassed a market value of $500 million on Monday, according to Ethereum blockchain data, CoinDesk reported. This is the first tokenized Treasury product to reach this milestone, and it took only four months since its debut in March. BlackRock's tokenized product growth is aided by other decentralized finance (DeFi) protocols such as Ondo Finance and Mountain Protocol using BUIDL as a backing asset for their own yield products. Digital asset brokers such as FalconX and most recently Hidden Road have also added the token to the collateral assets of their institutional investor clients. "BUIDL continues to be the underlying tokenized asset for many other innovative RWA products," Carlos Domingo, CEO of Securitize, told CoinDesk in an email.
U.S. Treasuries are at the forefront of the tokenization of physical assets, as digital asset companies and global financial giants race to put traditional instruments such as government bonds, private credit and funds on blockchain rails to achieve faster settlement and operational efficiency. The entire tokenized Treasury market, including BUIDL, has more than doubled this year, from $780 million in January to $1.8 billion on June 7. BlackRock's products are in the lead in tokenization products, with a market share of about 27%.
