BlackRock\'s BUIDL Fund Hits $500M Mark in Under Four Months, Boosted by Ondo Finance

YEREVAN (CoinChapter.com) — The BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL, has reached a significant milestone, achieving a $500 million market cap.

BlackRock's tokenized treasury fund, BUIDL, has reached a market cap of $500 million in less than four months. The fund, which was launched in April 2024, now holds $502.8 million worth of tokenized Treasurys, according to data from Ethereum block explorer Etherscan.

The rapid growth of BUIDL has been driven by strong demand from real-world asset tokenization firms. Ondo Finance, a leading player in this space, has purchased a significant amount of BUIDL tokens to back its OUSG token.

“The BUIDL fund, which launched on March 15, became the world’s largest tokenized treasury fund by late April, surpassing the Franklin OnChain U.S. Government Money Fund (BENJI). BUIDL has maintained this position since then,” CoinChapter reported at the time, citing data from DeFiLlama.

BUIDL tokens are priced 1:1 with the U.S. dollar and pay daily accrued dividends to investors monthly through a partnership with real-world asset tokenization platform Securitize.

Ondo's OUSG is the largest holder of BUIDL with $173.7 million, followed by stablecoin issuer Mountain Protocol, which also holds BUIDL to back its yield-bearing stablecoin, USDM.

According to data compiled by the parent firm of 21Shares from Dune Analytics, there is $1.67 billion worth of tokenized treasury funds onchain. Of these funds, more than 75% are on the Ethereum blockchain, while Stellar holds 23.9%.

In January, BlackRock CEO Larry Fink highlighted the potential of blockchain tokenization in making capital markets more efficient. Boston Consulting Group has estimated that the tokenization market will reach $16 trillion by 2030.

While U.S. Treasurys are a key component of this market, other assets that can be tokenized include stocks, real estate, and more. Real-world asset transactions peaked in April 2024, according to Dune Analytics data from Crypto Koryo.

Major asset management firms such as WisdomTree are also exploring the tokenization of real-world assets. Blockchain-native firms in this space include Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm, among others, contributing to a growing ecosystem of tokenized assets.

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