BlackRock’s BUIDL Emerges as Largest Treasury Fund on Blockchain
The BlackRock USD Institutional Digital Liquidity Fund has emerged as the largest treasury fund tokenized on a blockchain, surpassing Franklin Templeton's offering this week.
With just six weeks since its launch, BlackRock’s BUIDL product has achieved a market cap of $375 million, outpacing Franklin OnChain U.S. Government Money Fund (BENJI), which stands at $368 million after a year, according to data from a Dune Analytics dashboard.
BUIDL saw an influx of $70 million in the past week, including a substantial $50 million from Ondo Finance’s OUSG token.
In contrast, BENJI experienced a 3.7% decrease in assets under management during the same period.
The total value of U.S. Treasurys tokenized on Ethereum, Polygon, Solana, and other blockchains now exceeds $1.2 billion.
The trend of blockchain-based tokenization of real-world assets has gained momentum, with BlackRock CEO Larry Fink advocating for increased efficiency in capital markets through blockchain adoption.
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While Treasurys are a significant part of this trend, tokenization extends to stocks, real estate, and various other assets. However, the demand for tokenized products remains low, primarily due to thin liquidity, according to research strategist Tom Wan.
This lack of demand poses a challenge for issuers, creating a “chicken and egg problem,” as Wan noted in an April 30 post.
Nevertheless, there is optimism fueled by existing demand for U.S. Treasurys from players in the $140 billion stablecoin market. Wan anticipates a smoother transition for end investors once demand increases.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
