BlackRock’s BUIDL Fund: The New King of Tokenized Treasuries

TLDR

1. BlackRock’s USD Institutional Digital Liquidity (BUIDL) Fund paid out nearly $1.7 million in monthly dividends to its holders on Ethereum, a 38% increase from the previous month.
2. Ondo Finance’s crypto wallet, labeled as “OUSD Instant Manager,” received the largest share of the dividend, obtaining roughly 42% of the total pot.
3. The total value of all tokenized treasury product tokens in the crypto ecosystem currently stands at $1.45 billion, with BlackRock’s BUIDL fund accounting for almost a third of this value.
4. BlackRock’s BUIDL fund became the largest tokenized treasury fund in April 2024, overtaking Franklin Templeton’s BENJI offering just six weeks after its debut.
5. The rapid growth of BlackRock’s tokenized offering highlights the increasing interest in tokenization of real-world assets, particularly U.S. Treasuries, as a low-risk, stable yield investment option.

BlackRock, the world’s largest asset management firm, has been making significant strides in the tokenized treasury market with its USD Institutional Digital Liquidity (BUIDL) Fund.

The fund, which was launched on the Ethereum blockchain in March 2024, has seen remarkable growth and recently paid out nearly $1.7 million in monthly dividends to its holders, a 38% increase from the previous month.

The seven-figure payout was distributed through a single transaction on the Ethereum network, with 11 wallet addresses receiving an average of 151,735 BUIDL tokens.

Today, the @BlackRock USD Institutional Digital Liquidity Fund (BUIDL) paid out $1.7 million in monthly dividends to holders on the @ethereum blockchain.

BUIDL is the largest tokenized fund, providing US dollar yields to holders.https://t.co/J41qDJnwvB

Securitize is proud to… pic.twitter.com/PomFcRSEL4

— Securitize (@Securitize) June 3, 2024

Ondo Finance’s crypto wallet, labeled as “OUSD Instant Manager,” was the largest recipient, obtaining roughly 42% of the total dividend pot.

Ondo Finance, a tokenized real-world assets (RWA) platform, currently holds 49,999,999 BUIDL tokens, making it the fourth-largest holder of the fund.

The rapid growth of BlackRock’s BUIDL fund is a testament to the increasing interest in tokenization of real-world assets, particularly U.S. Treasuries. Tokenized treasuries offer investors a low-risk, stable yield investment option without leaving the blockchain ecosystem.

In just six weeks after its debut, the BUIDL fund overtook Franklin Templeton’s BENJI offering to become the largest tokenized treasury fund in April 2024.

The total value of all tokenized treasury product tokens in the crypto ecosystem currently stands at $1.45 billion, a more than 12.5% increase since the start of May. BlackRock’s BUIDL fund accounts for almost a third of this value, with a market cap of $462.5 million.

According to rwa xyz, the market value of tokenized treasury bonds has increased from $719 million to $1.44 billion since the beginning of this year, including BUIDL, FOBXX, OUSG, USDY and USTB. BlackRock’s tokenized fund BUIDL, which was issued at the end of March this year, has…

— Wu Blockchain (@WuBlockchain) June 4, 2024

BlackRock’s activity on-chain and in governance forums highlights the evolving institutional presence in the crypto ecosystem, moving from mere interest to active participation.

The asset management giant’s spot Bitcoin ETF, IBIT, has also been performing well, with outstanding net inflows and a total volume of $2.05 billion.