BlackRock BUIDL Fund Soars Past $1B After Ethena’s Massive Investment!
After Ethena allocated $200 million, BlackRock’s tokenized U.S. Treasury fund, BUIDL, now has more than $1 billion in assets under management. The overall assets of the BlackRock BUIDL fund have increased by 57% in the last month, according to data from RWA.xyz. The fund, which was launched in collaboration with Securitize, exposes investors to U.S. Treasuries, cash, and repurchase agreements.
Institutions Bet Big on Tokenized Treasuries: What’s Driving the Shift?
The tokenized Treasury trend is being adopted by more companies than just BlackRock and Ethena. Over the previous month, the value of Ondo Finance’s OUSG and USDY products has increased by 53%, approaching a total price of $1 billion. Concurrently, tokenized Treasuries, such as BUIDL, are now accepted as collateral for leveraged trades by prominent prime brokers like FalconX.
This change is a result of increased institutional trust in blockchain-based financial solutions. As of March 14, the overall tokenized Treasury market has risen to $4.4 billion in assets, according to data from RWA.xyz. Due to increased demand after the November U.S. election, the industry has quadrupled in size in the past year. According to analysts, investors are progressively shifting toward direct Treasury exposure rather than non-yielding stablecoins in order to get yield, which is currently 4.28% on average.
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