BlackRock’s BUIDL Leads Surge as Tokenized Treasury Funds Cross $2 Billion

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Hongji Feng

Author

Hongji Feng

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Hongji is a crypto and tech reporter. He graduated from Northwestern University’s Medill School of Journalism with a Bachelor’s and a Master’s. He has previously interned at HTX (Huobi Global),…

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Last updated:

August 26, 2024 06:04 EDT

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Tokenized Treasury funds have surpassed $2 billion in market capitalization, driven by rapid growth in offerings like BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).

According to data released by RWA.xyz, this surge highlights the increasing popularity of digital representations of U.S. government bonds, which are now being traded as tokens on various blockchain platforms, including Ethereum.

BlackRock’s BUIDL Market Cap Reaches $500 Million

The $2 billion milestone was reached just five months after reaching the $1 billion mark. BlackRock’s BUIDL fund, among others, has been a significant contributor to this growth, reflecting a broader trend of investors seeking to diversify through tokenized assets.

The statistics also show that the total market cap has increased by 2.61% over the past week, with Ethereum-based products representing $1.5 billion in market share.

Shortly after its release, BlackRock’s fund accumulated more than $500 million in market cap, taking the lead in the tokenized treasuries competition. It was followed by Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) and Ondo Finance’s USDY.

Largest Holder of On-Chain Assets

BlackRock has recently overtaken Grayscale as the largest holder of on-chain assets through its exchange-traded funds (ETFs). This marked a major shift in the digital asset space, driven by BlackRock’s expanding influence.

The increase in BlackRock’s ETF holdings reflected growing institutional interest in digital assets like Bitcoin and Ethereum. This trend is supported by the rising approval and acceptance of ETFs in the market.

According to Arkham Intelligence, as of August 16, BlackRock’s ETF holdings in IBIT and ETHA reached $21.22 billion, surpassing Grayscale’s combined holdings of $21.20 billion across its GBTC and ETHE funds.

Grayscale manages a larger overall balance, primarily through its GDLC fund, which oversees approximately $460 million in assets. The fund’s distinctive structure enables Grayscale to sustain a wider market reach.