BlackRock\'s Tokenized Treasury Product Surpasses $500M Market Value

Global asset manager BlackRock's BUIDL token, issued in partnership Securitize and backed by U.S. Treasuries, has surpassed $500 million market value on Monday, Ethereum blockchain data by Etherscan shows.

Global asset manager BlackRock's (NYSE:BLK) BUIDL token, issued in partnership with Securitize and backed by U.S. Treasuries, has surpassed $500 million in market value on Monday, according to Ethereum blockchain data by Etherscan.

The token, which is designed to track the performance of a basket of short-term U.S. government debt, has achieved the milestone in only four months since its debut in March. The tokenized treasury product is seeing strong demand as a backing asset for yield-products offered by other decentralized finance (DeFi) protocols.

For instance, Ondo Finance and Mountain Protocol are using BUIDL as a base asset in their DeFi yield products. Moreover, digital asset brokers like FalconX and Hidden Road have added the token to the list of collateral assets for their institutional investor clients across their networks.

"BUIDL continues to become the base tokenized asset for many other innovative RWA products to be built on," Carlos Domingo, CEO of Securitize, told CoinDesk in an email.

The tokenization of real-world assets, such as U.S. Treasuries, is a key area of focus for digital asset firms and global financial heavyweights. These firms are racing to put traditional instruments, like government bonds, private credit and funds, on blockchain rails.

The aim of tokenizing these assets is to achieve faster settlements, operational efficiencies and integrate these assets into the rapidly growing DeFi ecosystem. Many digital asset companies and investors seek these Treasury-backed offerings as a low-risk instrument where they can park their blockchain-based cash and earn a stable yield without leaving the blockchain ecosystem.

The overall tokenized treasury market, including BUIDL, has more than doubled this year, growing to $1.8 billion as of June 7 from $780 million in January, data from rwa.xyz shows.

BlackRock's offering is leading among the tokenized products, claiming roughly 27% market share. Some major players also enjoyed significant inflows over the past month, according to rwa.xyz.

For instance, Franklin Templeton's offering saw a 16% increase to $400 million, while Hashnote's and OpenEden's product grew 40% and 89%, respectively.

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