In the financial industry, over $1 billion of US Treasury securities have been tokenized on major blockchains such as Ethereum, Polygon, and Solana. Part of this significant milestone is due to the introduction of BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL.
Launched on Ethereum on March 20, BUIDL quickly reached a market value of $274 million, becoming the second-largest fund of tokenized government securities.
BlackRock’s new fund trails Franklin Templeton’s Franklin Onchain U.S. Government Money Fund (FOBXX), which leads the way with $360.2 million in U.S. Treasuries. Ondo Finance’s series of investments totaled $95 million and significantly boosted BUIDL’s growth. The introduction of BUILD not only strengthened BlackRock’s position, but also highlighted Ondo Finance’s large 38% stake in the fund.
The appeal of tokenized government bonds is becoming increasingly clear, offering a promising alternative to stablecoin yields, especially in a high interest rate environment. BlackRock CEO Larry Fink supports the idea that blockchain tokenization will make financial markets more efficient.
Tokenization is not just for the US Treasury. It also includes stocks, real estate, and many other assets. Ethereum is leading the way in the tokenization of real-world assets, with a $700 million market. Meanwhile, Franklin Templeton’s FOBXX is expanding its presence in Stellar and Polygon, further diversifying the tokenized financial products landscape.
Also read: BlackRock’s tokenization fund ‘brings legitimacy’ to public blockchains: Bernstein
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