BlackRock's USD Institutional Digital Liquidity Fund has reached a $500 million market cap. This makes it the first tokenized treasury fund to achieve this milestone. And it is even more impressive, given the fact that the fund, known as BUIDL, was launched less than four months ago.
BUIDL currently holds $502.8 million in tokenized Treasurys. This data is available on Ethereum block explorer Etherscan. The milestone was reached after Ondo Finance increased its holdings in BUIDL.
Ondo Finance uses BUIDL as a backing asset for its OUSG token. BlackRock's fund surpassed Franklin OnChain's U.S. Government Money Fund (BENJI) in late April. This occurred less than six weeks after BUIDL's March 15 launch.
BUIDL has maintained its top position since then. Its price is pegged 1:1 with the U.S. dollar. The fund pays daily accrued dividends to investors monthly through Securitize, a real-world asset tokenization platform.
Ondo's OUSG is the largest holder of BUIDL at $173.7 million. Mountain Protocol, a stablecoin issuer, also holds BUIDL. They use it to back their permissionless yield-bearing stablecoin, USDM.
There is now $1.67 billion worth of tokenized treasury funds onchain. This data comes from Dune Analytics, compiled by 21Shares' parent firm. Ethereum leads in tokenization with over 75% market share. Stellar follows at 23.9%.
BlackRock CEO Larry Fink commented on blockchain tokenization in January. He stated, "Capital markets could be made more efficient by blockchain tokenization." Boston Consulting Group estimates this market will reach $16 trillion by 2030.
U.S. Treasurys are just one asset type that can be tokenized. Stocks, real estate, and many other assets are also candidates. Real-world asset transactions peaked in April 2024. However, the number has fallen considerably since then, according to Dune Analytics data from Crypto Koryo.
WisdomTree is another large asset management firm tokenizing RWAs. Blockchain-native firms in this space include Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm.