BlackRock's BUIDL Surpasses Franklin Templeton, Becoming the Leading Tokenized Treasury Fund at $375M
In a significant shift within the asset management arena, BlackRock's BUIDL fund has recently risen to prominence, overtaking Franklin Templeton's counterpart as the largest tokenized treasury fund. Launched just six weeks ago, the BlackRock USD Institutional Digital Liquidity Fund—operating under the ticker BUIDL on the Ethereum blockchain—has achieved a remarkable milestone by gathering $375 million in deposits, according to blockchain data from rwa.xyz.
The fund, which is backed by U.S. Treasury bills, repurchase agreements, and cash, saw a substantial influx of $70 million last week alone. BUIDL's rapid ascension in the market has captured nearly 30% of the market share since its inception on March 21. In contrast, Franklin Templeton's BENJI tokenized fund witnessed a slight decline, dropping to $368 million in assets under management after some outflows during the same timeframe.
The success of BlackRock's BUIDL can largely be attributed to the burgeoning interest in tokenized treasury offerings, particularly those provided by Ondo Finance. The OUSG tokenized treasury, which uses BUIDL as a reserve asset, reported a significant $50 million in inflows over a single week. This strategic positioning has been instrumental in propelling BUIDL to the forefront of the tokenized fund landscape.
Tokenization, the process of converting traditional assets like bonds into blockchain-based tokens, is gaining traction among both digital asset firms and traditional financial institutions. This innovative approach offers numerous advantages, including more rapid and continuous settlements, heightened operational efficiency, and enhanced transparency. U.S. Treasuries, being low-risk and highly recognized financial instruments, have become popular choices for these tokenization efforts, serving as a stable platform for investors seeking to merge traditional finance with blockchain technology.
As the global tokenized treasury market expands, growing from nearly $100 million in early 2023 to approximately $1.3 billion currently, it is clear that BlackRock's entry has been a significant catalyst. The company's successful venture not only underscores the robust potential of tokenized assets but also sets a new standard in the intersection of traditional finance and blockchain innovation, reflecting a full-circle moment from its enthusiastic market entrance to its current dominant standing.
The fund, which is backed by U.S. Treasury bills, repurchase agreements, and cash, saw a substantial influx of $70 million last week alone. BUIDL's rapid ascension in the market has captured nearly 30% of the market share since its inception on March 21. In contrast, Franklin Templeton's BENJI tokenized fund witnessed a slight decline, dropping to $368 million in assets under management after some outflows during the same timeframe.
The success of BlackRock's BUIDL can largely be attributed to the burgeoning interest in tokenized treasury offerings, particularly those provided by Ondo Finance. The OUSG tokenized treasury, which uses BUIDL as a reserve asset, reported a significant $50 million in inflows over a single week. This strategic positioning has been instrumental in propelling BUIDL to the forefront of the tokenized fund landscape.
Tokenization, the process of converting traditional assets like bonds into blockchain-based tokens, is gaining traction among both digital asset firms and traditional financial institutions. This innovative approach offers numerous advantages, including more rapid and continuous settlements, heightened operational efficiency, and enhanced transparency. U.S. Treasuries, being low-risk and highly recognized financial instruments, have become popular choices for these tokenization efforts, serving as a stable platform for investors seeking to merge traditional finance with blockchain technology.
As the global tokenized treasury market expands, growing from nearly $100 million in early 2023 to approximately $1.3 billion currently, it is clear that BlackRock's entry has been a significant catalyst. The company's successful venture not only underscores the robust potential of tokenized assets but also sets a new standard in the intersection of traditional finance and blockchain innovation, reflecting a full-circle moment from its enthusiastic market entrance to its current dominant standing.
Last edited at：2024/12/16
#Ethereum#U.S. Treasuries