Understanding the Success of the BlackRock BUIDL Fund
With a market value of $500 million, the BlackRock USD Institutional Digital Liquidity Fund is the first tokenized treasury fund to accomplish this feat. BlackRock BUIDL, which was established less than four months ago, presently has $502.8 million worth of tokenized Treasurys in its possession, according to Ethereum block explorer Etherscan. The achievement came about as a result of Ondo Finance, a company that tokenizes actual assets, purchasing additional BUIDL, the asset that serves as the foundation for the OUSG token.
BUIDL Dominates Tokenized Treasury Market with $500M Holdings
Through its relationship with real-world asset tokenization platform Securitize, BUIDL offers investors monthly direct payouts of daily accrued dividends at a rate fixed at one-to-one with the US dollar. Shortly after its March 15 launch, BlackRock’s BUIDL became the largest tokenized Treasury fund globally in late April, surpassing the Franklin OnChain U.S. Government Money Fund (BENJI) in less than six weeks. From then on, BUIDL has maintained its top spot. With a holding of $173.7 million, Ondo’s OUSG is the biggest holder of BUIDL.
- The parent company of 21Shares has collated data from Dune Analytics that shows there is currently $1.67 billion worth of tokenized Treasury funds onchain.
- Stellar is the second-largest tokenization blockchain, with 23.9%, behind Ethereum, which holds a 75% share of Treasury funds.
FAQ
What is BlackRock’s Tokenized Treasury Fund?
BlackRock’s tokenized treasury fund is an investment vehicle created by tokenizing traditional treasury funds with blockchain technology. These funds are offered to investors through digital tokens, providing a more transparent and secure investment.
What are the Expectations for the Future of BlackRock’s BUIDL Fund?
BlackRock’s BUIDL fund is expected to grow further and attract more investors in the future. The fund has reached a size of $500 million, which supports this expectation.
What are the Differences between Tokenized Treasury Funds and Traditional Treasury Funds?
Tokenized treasury funds are created using blockchain technology, while traditional treasury funds are managed using traditional investment methods. Tokenized funds offer more transparent and faster transactions, while traditional funds may be subject to more regulation.
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