Blockchain Platforms Tokenize Over $1 Billion in US Treasuries: BlackRock's BUIDL Leads the Charge
Blockchain platforms have tokenized over $1 billion worth of US Treasuries, with Ethereum, Polygon, Solana, and other chains leading the charge. The BlackRock USD Institutional Digital Liquidity Fund played a pivotal role, boasting a market cap of $244.8 million since its launch on March 20. This Ethereum-based product, known as BUIDL, now stands as the second-largest in the field, trailing only Franklin Templeton's Franklin OnChain US Government Money Fund (FOBXX), which holds $360.2 million in US Treasuries. Data from 21Shares' Dune Analytics dashboard indicates that a total of $1.08 billion in US Treasuries has been tokenized across 17 products. Ondo Finance recently injected $95 million into the BUIDL fund, claiming a 38% share, to streamline settlements for its US Treasury-backed token, OUSG. BUIDL maintains a stable 1:1 peg to the US dollar and distributes dividends monthly. As highlighted by 21.co's Dune dashboard, tokenized government treasuries offer appealing yields compared to stablecoins, especially amid the current high-interest rate climate. This surge in tokenization, which began with a $100 million market in early 2023, encompasses various assets beyond US Treasuries, including stocks and real estate. BlackRock's CEO, Larry Fink, views blockchain tokenization as a catalyst for enhancing capital market efficiency, with industry projections forecasting a $16 trillion market by 2030. Ethereum leads the charge in tokenizing real-world assets (RWA), accounting for $700 million of the total value tokenized on-chain, followed by Franklin Templeton's FOBXX on Stellar and Polygon, and Polygon itself. Key players such as WisdomTree and blockchain-native firms like Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm are actively involved in RWA tokenization.
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