BlackRock's Tokenized Fund BUIDL Surpasses $500M in Assets Under Management
BlackRock's tokenized fund, BUIDL, has achieved a significant milestone by crossing a market value of $502.8 million, as per Etherscan data. Launched in March on Ethereum through a collaboration with Securitize Markets, BUIDL, also known as the BlackRock USD Institutional Digital Liquidity Fund, offers institutional investors a unique opportunity to earn yields on tokenized U.S. Treasuries.
In just over four months since its inception, BUIDL has become the first tokenized fund to exceed the half-billion-dollar mark, establishing itself as the largest of its kind, according to data from rwa.xyz. This achievement has pushed the Franklin Templeton OnChain U.S. Government Money Fund (FOBXX) to second place, which now manages assets over $400 million. The FOBXX fund has been available since April 2021.
The third most valuable tokenized fund is Ondo Finance’s USD Yield fund (USDY), which launched last August and currently holds $281 million in assets under management (AUM). The rapid growth of BUIDL highlights the increasing interest and investment in tokenized treasuries, a market that has expanded by over 130% since the beginning of the year, now valued at more than $1.8 billion.
Overall, the market for real-world assets (RWA) is currently valued at $12.45 billion, with industry experts anticipating further growth. Last month, RWA emerged as one of the best-performing sectors, driven by projects such as Ondo Finance, Clearpool, and Maple Finance. These projects saw their native tokens' fully diluted market cap increase by 53% in May alone.
BlackRock CEO Larry Fink has been vocal about the transformative potential of tokenization for financial assets. In an interview with Bloomberg earlier this year, Fink stated, “We could customize strategies through tokenization that fits every individual, we would have instantaneous settlement. We believe this is a technological transformation for financial assets.”