BlackRock’s BUIDL Fund Tops $500M as Tokenized Treasury Market Soars

This is the initial digitized fiscal product to reach this significant achievement in just four months after being introduced in March.

As an analyst, I have observed that the expansion of BlackRock’s tokenized product has been driven by various decentralized finance (DeFi) platforms like Ondo Finance and Mountain Protocol. These protocols utilize BUIDL as a collateral asset for developing their yield-generating products. Furthermore, digital asset brokers such as FalconX and the latest entrant, Hidden Road, have integrated the token into their institutional investors’ collateral assets, broadening its reach across their respective networks.

“Carlos Domingo, CEO of Securitize, shared with CoinDesk via email that BUIDL is increasingly serving as the foundation for various other tokenized asset projects to be developed upon it.”

U.S. Treasuries lead the charge in transforming real-world assets into digital tokens. Digital asset companies and major financial institutions are working diligently to convert securities like government bonds, private debt, and funds onto blockchain platforms. Their goal is to streamline transactions and improve overall functionality by facilitating quicker settlements and enhancing operational efficiency.

As a researcher studying the digital asset market, I have observed that many investors are drawn to Treasury-backed offerings provided by digital asset companies. These offerings serve as a low-risk alternative for investors looking to keep their blockchain-based funds within the ecosystem while earning a consistent return. In simpler terms, they see these offerings as a secure place to store their cryptocurrencies and benefit from a stable income without having to exit the blockchain world.

This year, the total tokenized treasury market, which includes BUIDL and other assets, has experienced a significant surge, increasing from approximately $780 million in January to over $1.8 billion as of June 7, based on data from rwa.xyz.

Among tokenized products, BlackRock’s offering holds the largest market share, accounting for approximately 27%. Notable competitors, including rwa.xyz-listed Franklin Templeton and Hashnote, as well as OpenEden, experienced substantial growth during the previous month. Franklin Templeton’s product saw a 16% increase to reach $400 million, while Hashnote and OpenEden reported expansions of 40% and 89%, respectively.