• Over $1 billion worth of United States Treasurys are now tokenized across Ethereum, Polygon, Solana, and other blockchains, with BlackRock’s BUIDL product leading the way with a market cap of $244.8 million.
  • The recent launch of the BlackRock USD Institutional Digital Liquidity Fund has seen significant deposits, totaling $95 million, contributing to its position as the second largest tokenized government securities fund behind Franklin Templeton’s FOBXX.
  • Tokenized government treasuries are gaining traction as an appealing investment option compared to stablecoin yields, with BlackRock CEO Larry Fink advocating for blockchain tokenization to enhance capital market efficiency in a market estimated to reach $16 trillion by 2030.

The new milestone was reached shortly after the launch of BlackRock’s first tokenized asset fund — BUIDL, which joined 16 other tokenized government securities funds last week.

About BUIDL

More than $1 billion worth of United States Treasurys now exist across Ethereum, Polygon, Solana, and other blockchains, helped in part by the recent launch of the BlackRock USD Institutional Digital Liquidity Fund.

BlackRock’s product, tickered “BUIDL,” was launched on Ethereum on March 20 and now boasts a market cap of $244.8 million. According to Etherscan, four transactions to the fund totaling $95 million over the week added a boost to the fund, making it the second-largest tokenized government securities fund.

Also read: UBS launches Hong Kong’s first tokenised warrant

Tokenized government treasury is a wiser choice out of high-interest rate

The most recent $79.3 million deposit to BlackRock’s fund was made by real-world asset tokenization firm Ondo Finance, which will allow instant settlements for its own U.S. Treasury-backed token, OUSG. The firm made a total of $95 million in deposits across four transactions, according to Etherscan.

Ondo Finance now owns a 38% share in BUIDL, noted Tom Wan, a research strategist at 21.co in a March 27 X post.

BUIDL’s price is pegged 1:1 with the United States dollar and pays daily accrued dividends directly to investors each month. It was launched on Ethereum via the Securitize protocol.

In its Dune dashboard, 21.co described tokenized government treasury as more appealing from both a risk and return perspective than stablecoin yields, given the current high-interest rate environment.

Blockchain tokenization is said to make capital markets more efficient

BlackRock CEO Larry Fink recently voiced that capital markets could be made more efficient by blockchain tokenization, which Boston Consulting Group estimates will become a $16 trillion market by 2030.

U.S. Treasurys are only one piece of the pie — stocks, real estate, and many other assets can also be tokenized.

Ethereum also accounts for $700 million of all real-world assets (RWA) tokenized on-chain.

Franklin Templeton’s FOBXX is tokenized on Stellar and Polygon, which have the second and third largest market share of tokenized products at $358 million and $13 million, respectively.