Key Points
- BlackRock’s BUIDL fund hits $500M in market cap.
- First tokenized treasury to reach this milestone.
- Ethereum dominates with over 75% market share.
- Templeton’s BENJI token follows with $402M deposits.
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has made headlines by surpassing a market value of
$500 million, as reported by Dune Analytics. This milestone positions BUIDL as the first tokenized treasury fund to reach this significant mark, highlighting its rapid growth and dominance in the market.
BlackRock’s BUIDL fund becomes first $500M tokenized fund https://t.co/o65IH4iPxT #Markets
— Jason Fernandes (@JasonDotX) July 9, 2024
BUIDL’s Rapid Growth and Market Impact
As of July 8, 2024, BUIDL has attracted deposits totaling approximately $502 million. This impressive figure is supported by significant contributions from Ondo Finance, which holds the largest share in BUIDL with $173.7 million.
Additionally, Mountain Protocol utilizes BUIDL to back its USDM stablecoin, showcasing the fund’s integral role in supporting other financial products.
The fund’s launch in late March this year marked a turning point in the tokenized government securities market.
Within just six weeks, BUIDL surpassed Franklin Templeton’s Franklin OnChain US Government Money Fund (FOBXX), represented by the BENJI token, to become the world’s largest tokenized treasury fund.
As of now, BENJI has garnered around $402 million in deposits, trailing behind BUIDL but still holding a substantial market presence.
Ethereum’s Dominance and the Rise of Real-World Assets
Ethereum continues to lead the tokenized treasury market, accounting for over 75% of the market share. This dominance is evident in the total market for tokenized treasury funds, which stands at $1.67 billion.
The growing interest in real-world asset (RWA) tokens has further propelled this market. According to Artemis, a data aggregator, RWA tokens saw an average growth of nearly 28% in the second quarter, outperforming other crypto sectors.
Prominent names in this space include Ondo (ONDO), Mantra (OM), Clearpool (CPOOL), and Maple (MPL). These tokens have been instrumental in showcasing the potential and reliability of RWA tokens, drawing increased attention and investment from various stakeholders in the crypto ecosystem.
BlackRock’s BUIDL fund, with its milestone achievement, exemplifies the growing trend of tokenizing traditional financial assets.
The fund’s success not only underscores the potential for further innovation in the financial sector but also paves the way for other institutions to explore tokenization as a viable strategy for asset management and growth.
The surge in tokenized treasury funds reflects a broader movement towards integrating blockchain technology with traditional finance, offering enhanced liquidity, transparency, and efficiency.
As more funds and financial products adopt this approach, the landscape of asset management is poised for significant transformation.
