The tokenization of US Treasury securities reaches a significant milestone, surpassing $1 billion across various blockchains, including Ethereum, Polygon, and Solana. BlackRock's BUIDL fund has emerged as a leader in this space, with a market cap of $244.8 million. Discover the latest developments in government securities tokenization and the impact on the crypto and blockchain landscape.
The movement to tokenize US Treasurys has gained momentum, recently eclipsing the $1 billion mark across multiple blockchains. Notably, BlackRock's BUIDL fund has made substantial strides in this domain, becoming the second-largest tokenized government securities fund. This achievement underlines the growing influence of blockchain technology and the crypto industry in reshaping traditional financial assets.
OVER $1B IN US TREASURYS TOKENIZED ON-CHAIN The tokenization of United States Treasurys has hit a significant milestone, with over $1 billion in value now existing across Ethereum, Polygon, Solana, and other blockchains. This milestone comes shortly after the launch of BlackRock's first tokenized asset fund, BUIDL, which joined 16 other tokenized government securities funds last week.
More than $1 billion worth of United States Treasurys now exist across Ethereum, Polygon, Solana, and other blockchains, driven in part by the recent debut of the BlackRock USD Institutional Digital Liquidity Fund, known as BUIDL. This fund, launched on Ethereum on March 20, has quickly ascended to a market cap of $244.8 million.
According to data from Etherscan, four transactions totaling $95 million were added to the BUIDL fund over the past week, further solidifying its position as the second largest tokenized government securities fund. BUIDL now trails only Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX), which holds $360.2 million in U.S. Treasurys.
The collective tokenization of U.S. Treasurys has soared to $1.08 billion across 17 products, marking a substantial leap forward for blockchain-based asset management.
BlackRock's BUIDL fund received a recent deposit of $79.3 million from real-world asset tokenization firm Ondo Finance, further bolstering its standing in the tokenized assets space. Ondo Finance now holds a 38% share in BUIDL, highlighting the growing collaboration among industry players in driving the tokenization of government securities.
BUIDL, pegged 1:1 with the US dollar, pays daily accrued dividends directly to investors each month. Launched on Ethereum via the Securitize protocol, BUIDL has been lauded for its appeal from both risk and return perspectives, especially amidst the current high-interest rate environment.
Blockchain tokenization has garnered significant attention, with BlackRock CEO Larry Fink expressing optimism about the potential for blockchain to enhance capital market efficiency. Boston Consulting Group estimates that blockchain tokenization could evolve into a $16 trillion market by 2030. While U.S. Treasury bonds form a vital part of this movement, the potential for tokenization extends to stocks, real estate, and a plethora of other assets.
Ethereum holds a significant stake in the tokenization of real-world assets (RWA), accounting for $700 million of the total amount tokenized on-chain. Franklin Templeton's FOBXX is tokenized on Stellar and Polygon, serving as a testament to the comprehensive nature of blockchain-based tokenization across various platforms.
Noteworthy firms such as WisdomTree and Ondo Finance, alongside more blockchain-native entities like Backed Finance, Matrixdock, Maple Finance, and Swarm, have been actively engaged in tokenizing real-world assets, reflecting the diverse ecosystem driving this transformative trend.
The profound impact of blockchain-based tokenization on traditional assets is clear, signaling a pivotal shift in the financial landscape. As the trajectory of tokenization continues to evolve, the implications for investors, institutions, and the wider financial ecosystem are poised to be substantive.
(BRAYDEN LINDREA, COINTELEGRAPH, 2024)