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BUIDL Tokenized Treasury Bond Fund from BlackRock raised $245 Million in the First Week

  • DeFi
  • calendarMay 24, 2024
  • calendarRWA.Media
video
BlackRock's BUIDL tokenized U.S. Treasury bond fund from BlackRock has gained nearly a quarter of a billion dollars in its first week. Etherscan data shows that $244.8 million of BUIDL shares are in just seven wallets, marking a significant milestone for tokenized assets.
Launch and Market Impact
BUIDL, launched on the Ethereum blockchain, is now the second-largest tokenized U.S. Treasury bond fund, behind only Franklin Templeton's OnChain U.S. Government Money Fund, which raised $360.25 million in 11 months. BUIDL's success brought the total market value of tokenized Treasury bond funds to a record high of more than $876 million.
Recommended article: Franklin Templeton Has Tokenized a U.S. Government Money Fund Valued at $380 Million
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) uses Ethereum to provide instant and transparent settlement. The fund consists of U.S. Treasury bills and repurchase agreements. Shareholders earn income through BUIDL shares, each of which is pegged to $1. Qualified investors can access the fund through Securitize Markets with a minimum initial investment of $5 million.
Strategic Moves and Collaborations
BlackRock's investment in Securitize and appointment of Joseph Chalom, BlackRock's global head of strategic ecosystem partnerships, to the Securitize Markets board underscores the company's commitment to tokenization.
Recommended article: BlackRock and Web3 Integration: A New Era for Real-World Assets
In a related development, Ondo Finance announced plans to transfer significant assets from its Ondo Short-Term US Government Bond Fund (OUSG) to BUIDL. Ondo Finance praised BlackRock's adoption of the securities tokenization concept, seeing it as a proof of concept and a significant step forward for financial markets.
Conclusion
Robert Mitchnik, BlackRock's head of digital assets, described BUIDL as the “latest step” in the company's digital asset strategy. This follows the January launch of BlackRock's iShares Bitcoin Trust (IBIT), quickly becoming the leading Bitcoin exchange-traded fund (ETF) with $15.4 billion in assets.