BlackRock’s RW...

BlackRock’s RWA Fund on Ethereum Surpasses $500 Million, Achieving 100% Monthly Growth

By José Oramas July 11, 2024 In Blackrock, Ethereum, Stock Market, Tokenisation

BlackRock’s RWA fund BUIDL now holds over US$500M, surpassing Franklin Templeton’s BENJI fund.
The achievement comes after Ondo Finance bought more BUIDL to back its OUSG token.
Tokenised treasuries hit US$1.8B in June. This is more than double the US$780M recorded in Q1, 2024.

BlackRock’s tokenised treasury product, BUIDL, reached a milestone of over US$500M (AU$739M) in market capitalisation, according to Etherscan data.

BUIDL currently holds US$502.8M (AU$745.48M) in tokenised treasuries. The product, pegged 1:1 with the US Dollar, has experienced widespread adoption in digital asset brokers and DeFi protocols.

For instance, in March, FalconX integrated BUIDL as trading collateral on its platform. Shortly after, Ondo Finance, an RWA network on Ethereum and Solana, allocated roughly US$100M (AU$148M) in assets to BUIDL. This was done to speed up the settlement time of the platform’s treasury-backed token OUSG.

According to CoinGecko data, Ondo Finance is the largest RWA protocol with a market capitalization of over US$1B (AU$1.48B). The platform provides institutional-grade products and services, with a keen focus on offering tokenised treasuries.

The Demand for Tokenised Treasuries

US Treasuries are the most popular type of tokenised RWAs. While it looks complex at first, tokenisation is essentially the process of turning a real-life asset —whether tangible or intangible, like physical and intellectual property— into a digital token recorded and stored on a blockchain network.

Further, tokenising assets into the blockchain provides new use cases and applications for investors and companies. Some benefits include higher liquidity for trading platforms, the transparency and immutability of the blockchain, fractional ownership, and more.

Data from RWA.xyz shows the staggering surge of tokenised treasuries.

By January 1, the total value locked (TVL) in tokenised treasuries was US$776.1M (AU$1.14B). Fast-forward to today, the TVL is at US$1.78B (AU$2.63B), an increase of 130.3%.

US tokenised treasuries are attractive to investors and institutions because it allows them to benefit from the usual stability of the traditional financial market while providing 24/7 accessibility and transparency thanks to blockchain technology.