The market cap of on-chain U.S. treasuries funds tagged new all-time highs amid BUIDL’s success.<\/p>\n
BUIDL, the tokenized U.S. treasuries fund from BlackRock, the world\u2019s largest asset manager, has already pulled in a quarter of a billion dollars during its first week.<\/p>\n
On-chain data shows that\u00a0$244.8 million<\/a>\u00a0worth of BUIDL shares are held by seven different wallets, according to Etherscan. BUIDL already ranks as the second-largest tokenized U.S. treasuries fund behind Franklin Templeton\u2019s OnChain U.S. Government Money Fund, which has attracted\u00a0$360.25 million<\/a>\u00a0since\u00a0launching 11 months ago<\/a>.<\/p>\n BlackRock\u2019s rapid success has propelled the market cap of tokenized treasuries funds to an all-time high above $876 million.<\/p>\n The\u00a0BlackRock USD Institutional Digital Liquidity Fund<\/a>\u00a0(BUILD) was deployed on Ethereum to much fanfare last week, with many community members celebrating the fund as a major vote of confidence in the network from a world-leading financial institution.<\/p>\n <\/p>\n BlackRock described BUIDL as facilitating instantaneous and transparent settlement by leveraging the Ethereum blockchain.<\/p>\n The fund holds U.S. Treasury bills and repurchase agreements, with shareholders earning yields from the underlying assets in the form of BUIDL shares. The price of BUIDL shares are pegged at $1 each.<\/p>\n Qualified investors can access the fund via Securitize Markets, a financial technology firm facilitating share insurance in the form of blockchain-based tokens. BUIDL’s minimum initial investment is $5 million.<\/p>\n BlackRock invested in Securitize as part of their partnership. Joseph Chalom, BlackRock\u2019s global head of strategic ecosystem partnerships, was also appointed to Securitize Markets\u2019 board of directors. <\/p>\n On March 27,\u00a0Ondo Finance<\/a>, a leading platform for tokenized real-world assets, announced it will shift \u201ca substantial portion\u201d of the assets from the Ondo Short-Term US Government Bond Fund (OUSG), the third-largest tokenized treasuries fund with $88.5 million, into BUIDL.<\/p>\n \u201cWe\u2019re excited to see BlackRock embracing securities tokenization with the launch of BUIDL,\u201d Ondo said. \u201cNot only does this further validate our original concept of a tokenized US Treasury fund, but it also bolsters our thesis that tokenization of traditional securities on public blockchains represents the next major step in the evolution of financial markets.\u201d<\/p>\n Robert Mitchnick, BlackRock\u2019s head of digital assets, described BUIDL as the \u201clatest progression\u201d in the firm\u2019s digital assets strategy.<\/p>\n <\/p>\n Start for free<\/a><\/div>\n <\/p>\n In January, BlackRock launched<\/a> its iShares Bitcoin Trust (IBIT), which quickly emerged as a leading spot Bitcoin exchange-traded fund (ETF).<\/p>\n IBIT currently boasts $15.4 billion in assets, ranking as the second-largest spot Bitcoin ETF behind the recently converted\u00a0Grayscale Bitcoin Trust<\/a>\u00a0with $23.3 billion, and ahead of the Fidelity Wise Origin Bitcoin Fund with $8.76 billion, according to\u00a0Bloomberg<\/a>.<\/p>\n BlackRock is not the only legacy financial institution moving to embrace tokenization.<\/p>\n On March 26, HSBC, one of the ten largest banks worldwide,\u00a0launched<\/a>\u00a0a retail-facing tokenized gold product in Hong Kong amid the local government\u2019s push to embrace web3. The HSBC Gold Token can be purchased via the company\u2019s online banking app.<\/p>\n HSBC described the product as the first retail gold token issued by a bank. \u201cWe acknowledge the rising demand for digital assets and the existing familiarity of our customers with gold investment,\u201d said Maggie NG, general manager at HSBC Hong Kong.<\/p>\n\n
Institutions double down on tokenization<\/h2>\n