Global asset manager BlackRock’s BUIDL token, which is backed by U.S. Treasuries and issued in partnership with Securitize, has reached a market value exceeding $500 million as of Monday. The data from the Ethereum blockchain by Etherscan indicates that this achievement marks a significant milestone in the tokenized treasury product space. Since its introduction in March, BUIDL has demonstrated remarkable growth, taking only four months to surpass the $500 million mark.
The success of BlackRock’s tokenized product can be attributed to its adoption by various decentralized finance (DeFi) protocols like Ondo Finance and Mountain Protocol. These platforms have utilized BUIDL as a key asset to support their own yield-generating products. Furthermore, digital asset brokers such as FalconX and Hidden Road have incorporated the token into their collateral assets offerings for institutional investors, expanding its utility across different networks.
According to Carlos Domingo, CEO of Securitize, “BUIDL continues to serve as the foundational tokenized asset for the development of innovative Real World Asset (RWA) products.” This signifies the growing importance of tokenized U.S. Treasuries in the digital asset landscape, with financial institutions and blockchain firms racing to tokenize traditional assets like government bonds for enhanced operational efficiencies and faster settlements.
Investors are increasingly turning to tokenized Treasury-backed instruments as a secure and stable option to park their blockchain-based assets while earning yields within the blockchain ecosystem. The tokenized treasury market, including BUIDL, has more than doubled in size this year, expanding from $780 million in January to $1.8 billion by June 7, as reported by data provider rwa.xyz.
BlackRock’s BUIDL token commands a significant market share of approximately 27% among tokenized treasury products, leading the way in this emerging sector. Other major players in the market, such as Franklin Templeton, Hashnote, and OpenEden, have also experienced notable growth in their offerings, indicating a broader trend towards the tokenization of real-world assets.