BlackRock\'s BUIDL Tokenized Treasury Fund Reaches $500M Market Cap, Underscoring Growing Investor Interest in Blockchain-Based Asset Tokenization

The fund's rapid growth was bolstered by a recent purchase from real-world asset tokenization firm Ondo Finance, which uses BUIDL as a backing asset

World's Largest Asset Manager's BUIDL Fund Crosses Half a Billion in Market Cap

Asset tokenization is gaining steam in the crypto market. BlackRock's BUIDL fund has crossed the $500 million market cap mark in less than four months since its launch, according to data from Etherscan.

The fund, which holds $502.8 million in tokenized U.S. Treasurys, is named after the Web3 mantra "build in public, launch in stealth." It was launched on March 15 with an initial market cap of $300 million.

The fund's rapid growth was boosted by a recent purchase from real-world asset tokenization firm Ondo Finance, which uses BUIDL as a backing asset for its OUSG token.

The BUIDL fund surpassed the Franklin OnChain U.S. Government Money Fund (BENJI) in late April to become the world's largest tokenized treasury fund, a position it has maintained since its launch.

The fund maintains a stable price pegged 1:1 with the U.S. dollar and distributes daily accrued dividends directly to investors on a monthly basis through its partnership with the real-world asset tokenization platform Securitize.

Ondo Finance holds the largest share of BUIDL at $173.7 million, followed by stablecoin issuer Mountain Protocol, which also holds BUI DL to back its permissionless yield-bearing stablecoin, USDM.

According to data from Dune Analytics, there is now a total of $1.67 billion in tokenized treasury funds onchain, with Ethereum leading the tokenization blockchain market with over 75% share, followed by Stellar at 23.9%.

BlackRock CEO Larry Fink has previously highlighted the potential of blockchain tokenization to enhance efficiency in capital markets. Boston Consulting Group estimates that the blockchain tokenization market could reach $16 trillion by 2030, encompassing not just U.S. Treasurys but also stocks, real estate, and various other assets.

While real-world asset transactions peaked in April 2024, recent data from Dune Analytics shows a decline in transaction volume since then. WisdomTree and several blockchain-native firms like Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm are actively involved in tokenizing real-world assets.

BlackRock's BUIDL fund is part of a growing wave of asset tokenization initiatives by both traditional and Web3 players, signaling a potential paradigm shift in global capital markets.

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