On Monday, Global asset manager BlackRock’s BUIDL token soared past the $500 million market value mark. That is, according to Ethereum blockchain data from Etherscan. The impressive feat meant that BUIDL becomes the first tokenized treasury product to hit the milestone, barely four months after launching in March.
Tokenized Treasuries Gain Momentum in DeFi
This rapid growth points to the growing adoption and confidence in tokenized financial instruments within the blockchain ecosystem.
The success of BUIDL fund, issued in collaboration with Securitize and backed by U.S. Treasuries, is reminiscent of a growing trend among financial institutions and digital asset firms. Many of which, in their bid for improved efficiency and faster settlement times, have been shifting their focus to tokenizing traditional financial instruments.
Carlos Domingo, CEO of Securitize, confirmed this huge potential of tokenized assets and how the broader industry is gradually gravitating towards them. A part statement from the CEO reads:
“BUIDL continues to become the base tokenized asset for many other innovative real-world asset (RWA) products to be built on.”
Domingo’s statement borders on the growing influence of BlackRock’s tokenized product, which is all thanks to its adoption by various decentralized finance (DeFi) protocols and digital asset brokers. Ondo Finance and Mountain Protocol are among the platforms using BUIDL as a backing asset for their yield-generating products. Additionally, digital asset brokers such as FalconX and Hidden Road have have also allowed their institutional investors to add the token as collateral assets, further solidifying BUIDL’s position in the market.
BlackRock’s BUIDL Fund Exerts Market Dominance
As earlier noted, tokenization of real-world assets, particularly U.S. Treasuries, is currently gaining traction. However, leading the charge with its product is BlackRock’s BUIDL, which holds approximately 27% of the tokenized treasury market. Other major players in the space are also experiencing noticeable growth. Franklin Templeton’s tokenized treasury product, for instance, has surged 16% to $400 million, while offerings from Hashnote and OpenEden also saw notable increases of 40% and 89%, respectively. These figures, sourced from rwa.xyz, confirm the ongoing boom of interest and investment in tokenized assets.
Meanwhile, the growing interest from investors and digital asset companies looks to be grounded in the fact that Treasury-backed tokenized offerings are a low-risk means to earn stable yields while remaining within the blockchain ecosystem. So, the trend might be an indicator of a desire for security and predictability in an often-volatile market.
The overall tokenized treasury market has more than doubled in size this year, though. It has reached $1.8 billion as of June 7, up from $780 million in January.
