BlackRock’s tokenized fund surpasses $500 million

BlackRock, the world’s largest asset management firm, continues its growth in the area of ​​tokenization of real-world assets (RWA) on cryptocurrency networks.

His fund “BlackRock USD Institutional Digital Liquidity Fund” (BUIDL) has become the First US Treasury Bond Token Fund to Surpass $500 Million in assets under management, a milestone that has been reached in just 4 months since its launch last March.

In the following chart from on-chain data explorer Rwa.xyz, you can see BUIDL’s growth compared to other similar funds.

BUIDL, which It “lives” on the Ethereum network and operates 24 hours a day, 365 days a year.is managed by Securitize Markets, a company specialized in tokenized securities.

This fund invests in cash, US Treasury bills and repurchase agreements, and offers institutional investors exposure to these assets with the aim of obtaining returns in US dollars.

One of the main features of BUIDL is its ability to be settled in the stablecoin USDCissued by the company Circle.

This liquidation option provides investors with a fast and efficient way to dispose of their tokenized assets, reducing costs and eliminating the friction associated with traditional liquidation processes.

Being a tokenized investment fund, represented by an Ethereum ERC-20 token, BUIDL resembles a stablecoin in its goal of offering a stable value of $1 per token and distribute daily dividends to investors, as explained by CriptoNoticias.

BUIDL’s accelerated growth and Ethereum’s dominance

BUIDL’s rapid growth positions it as a benchmark in the US Treasury bond tokenized fund industry.

By comparison, the second-largest tokenized Treasury bond fund, Franklin Templeton’s OnChain US Government Money Fund (FOBXX), has amassed $400 million in assets since its launch in April 2021.

For its part, Ethereum It is consolidated as the predominant network in this sectorwith $1.3 billion locked in Treasury bond tokenized funds, as seen in the chart.

They are followed by networks such as Stellar, Solana, Mantle and Gnosis. In total, the on-chain treasury fund industry exceeds $1.8 billion under managementrepresenting a growth of 133% since the beginning of the year.

The BUIDL fund is nothing more than the continuation of BlackRock’s story of entering the digital asset industry. It is worth recalling that in January, the financial asset manager launched its Bitcoin (BTC) spot ETF, trading under the ticker IBIT, which has become the largest Bitcoin fund in the world.