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BlackRock’s BUIDL Fund Surpasses $500 Million Market Value in Four Months

BlackRock’s BUIDL Fund Surpasses $500 Million Market Value in Four Months

BlackRock, the global asset manager, has seen its BUIDL token, backed by US Treasury bonds and issued in partnership with Securitize, surpass a market capitalization of $500 million on Monday.

BUIDL has become the first tokenized treasury product to reach this milestone, just four months after its launch in March.

Adoption by DeFi Protocols

The growth of BlackRock’s tokenized product has been driven by other decentralized finance protocols such as Ondo Finance and Mountain Protocol, which use BUIDL as a supporting asset for their own yield products. Digital asset brokers like FalconX and more recently Hidden Road have also added the token to their collateral assets for institutional clients across their networks.

BUIDL continues to become the foundational tokenized asset upon which many other innovative RWA products can be built.

Carlos Domingo, CEO of Securitize

The Tokenization of Real-World Assets (RWA)

US Treasury bonds are at the forefront of tokenizing real-world assets, as digital asset companies and global financial heavyweights race to place traditional instruments such as government bonds, private credit, and funds on blockchain rails. This transition aims to achieve faster settlements and increased operational efficiencies.

Many digital asset companies and investors are seeking these offerings backed by Treasury bonds as a low-risk instrument where they can place their blockchain-based money and earn a stable return without leaving the blockchain ecosystem.

An Expanding Market

The global market for tokenized Treasury bonds, including BUIDL, has more than doubled this year, reaching $1.8 billion as of June 7th, up from $780 million in January, according to data provided by BlackRock’s offering leads among tokenized products, claiming approximately 27% market share.

Some major players have also experienced significant inflows over the past month. Franklin Templeton’s offering increased by 16% to $400 million, while Hashnote and OpenEden’s products increased by 40% and 89% respectively.

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