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Over $1 Billion in U.S. Treasuries Tokenized on Leading Blockchains as BlackRock’s BUILD is Getting Traction

BlackRock leads with BUIDL in tokenizing government securities

Over $1 billion of United States Treasuries have been tokenized on-chain, marking a significant milestone in the integration of traditional finance with blockchain technology. This achievement comes on the heels of the launch of BlackRock's USD Institutional Digital Liquidity Fund, also known as BUIDL. This innovative product joins the ranks of 17 tokenized government securities funds, contributing to a robust ecosystem spanning across Ethereum, Polygon, Solana, and other blockchains.

BlackRock's BUIDL, unveiled on Ethereum on March 20, now showcases a market cap of $244.8 million. Its rapid ascent was propelled by four transactions totaling $95 million within a week, positioning it as the second-largest fund of its kind. Notably, BUIDL is second only to Franklin Templeton's Franklin OnChain U.S. Government Money Fund (FOBXX), which holds $360.2 million in U.S. Treasurys.

This surge in tokenized Treasurys was further amplified by a substantial $79.3 million deposit from Ondo Finance, enhancing its own U.S. Treasury-backed token, OUSG. This strategic move, documented on Etherscan, elevated Ondo Finance's stake in BUIDL to 38%, a testament to the fund's growing influence and the increasing embrace of blockchain for financial instruments.

The future of capital markets: tokenization across assets

Spearheaded by innovations like BlackRock's BUIDL fund, tokenization extends beyond U.S. Treasuries to encompass a wide array of assets, including stocks and real estate, with Ethereum leading the charge by hosting $700 million of all real-world assets (RWA) tokenized on-chain.

Tokenized government treasuries, viewed through the lens of the current high-interest environment, offer a compelling alternative to stablecoin yields, balancing risk and return appealingly. This sentiment is echoed by BlackRock CEO Larry Fink, who recently highlighted the efficiency gains blockchain tokenization could bring to capital markets, with Boston Consulting Group projecting this market to reach $16 trillion by 2030.

The landscape of tokenization is rich and varied, with Franklin Templeton's FOBXX tokenized on Stellar and Polygon capturing significant market shares. Furthermore, the emergence of blockchain-native firms like Ondo Finance, alongside traditional asset management giants.