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BlackRock’s BUIDL Becomes Largest Tokenized Treasury Fund Hitting $375M, Toppling Franklin Templeton’s

Apr 29, 2024
  • BlackRock’s BUIDL fund grew $70 million last week to take the top spot from Franklin Templeton’s BENJI offering, which saw minor outflows, blockchain data shows.
  • Growth of Ondo Finance’s OUSG token was responsible for large part of the inflows.

As a seasoned crypto investor with a keen interest in the digital asset space, I’m thrilled to witness the latest developments in the tokenized asset fund market. The recent surge in inflows to BlackRock’s BUIDL fund and the subsequent shift in market leadership is an exciting turn of events.

BlackRock’s (BLK) tokenized asset fund BUIDL, managed by asset management giant BlackRock, surpassed Franklin Templeton’s competing offering as the largest in its class on Tuesday, six weeks following its launch.

The BlackRock USD Institutional Digital Liquidity Fund, represented by the BUIDL token on the Ethereum (ETH) network and backed by U.S. Treasury bills, repo agreements, and cash, has grown to $375 million in deposits following a weekly inflow of $70 million, according to data from rwa.xyz. Debuted on March 21 with the help of tokenization services platform Securitize, this fund currently holds nearly 30% of the market share.

During this time, the Franklin OnChain U.S. Government Money Fund, represented by the BENJI token, saw a decrease in managed assets to $368 million due to small-scale withdrawals.

As a crypto investor, I’ve noticed a significant shift in the market recently, with Ondo Finance (ONDO) taking the lead. Their innovative tokenized Treasury offering, OUSG, has attracted my attention due to its strategic use of BlackRock’s token as a reserve asset. In just one week, this platform managed to draw in an impressive $50 million worth of inflows.
The surge in popularity of BlackRock’s inaugural tokenized product can be attributed to the allure of converting traditional assets such as bonds and credit into digital tokens through the process of real-world asset (RWA) tokenization. This innovation has piqued the interest of both digital asset companies and traditional finance heavyweights alike. Tokenization presents several advantages, including accelerated, round-the-clock settlements, heightened operational efficiency, and enhanced transparency.

As a researcher studying the digital asset landscape, I’ve observed that U.S. Treasuries have become an attractive entry point for tokenization initiatives due to their low-risk nature and widespread recognition among investors. These securities serve as a safe haven for on-chain funds, enabling stable yield generation without requiring investors to exit the blockchain ecosystem. The tokenized market for Treasuries experienced remarkable growth, surging from around $100 million in early 2023 to nearly $1.3 billion by the end of that year. This expansion can be partly attributed to BlackRock’s entrance into this competitive space.

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2024-04-30 18:10