The total value of United States Treasurys that exist on various blockchains, including Ethereum, Polygon, and Solana, has surpassed $1 billion. This is partly due to the recent launch of the BlackRock USD Institutional Digital Liquidity Fund. BlackRock’s product, known as “BUIDL,” was introduced on Ethereum on March 20 and currently has a market capitalization of $244.8 million.
According to data from Etherscan, four transactions totaling $95 million were made to the fund in the past week, contributing to its growth. As a result, BUIDL has become the second largest tokenized government securities fund, trailing only Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX), which holds $360.2 million in U.S. Treasurys.
The data compiled by 21Shares’ parent company on a Dune Analytics dashboard reveals that a total of $1.08 billion in U.S. Treasurys have now been tokenized across 17 different products.
The most recent deposit of $79.3 million to BlackRock’s fund came from Ondo Finance, a real-world asset tokenization firm. This deposit enables instant settlements for Ondo Finance’s own U.S. Treasury-backed token, OUSG. In total, Ondo Finance made $95 million in deposits across four transactions, as confirmed by Etherscan.
As a result of this deposit, Ondo Finance now holds a 38% share in BUIDL, according to Tom Wan, a research strategist at 21.co. BUIDL is pegged to the United States dollar at a 1:1 ratio and pays daily accrued dividends directly to investors every month. It was launched on Ethereum using the Securitize protocol.
The Dune dashboard provided by 21.co describes tokenized government treasurys as more attractive than stablecoin yields in the current high-interest rate environment, both in terms of risk and return.
BlackRock’s CEO, Larry Fink, recently expressed his belief that blockchain tokenization could make capital markets more efficient. Boston Consulting Group predicts that the blockchain tokenization market could reach $16 trillion by 2030.
While U.S. Treasurys are a significant part of the tokenization trend, other assets such as stocks and real estate can also be tokenized. Ethereum alone accounts for $700 million of all real-world assets tokenized on-chain.
Franklin Templeton’s FOBXX is tokenized on Stellar and Polygon, which have the second and third largest market shares in terms of tokenized products, with $358 million and $13 million, respectively.
In addition to BlackRock and Franklin Templeton, other asset management firms such as WisdomTree are also involved in tokenizing real-world assets. Meanwhile, blockchain-native firms like Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm are active participants in this space.
In summary, the tokenization of United States Treasurys on various blockchains has exceeded $1 billion, with the BlackRock USD Institutional Digital Liquidity Fund contributing significantly to this growth. Tokenized government securities funds like BUIDL and FOBXX offer appealing opportunities in the current market environment. The potential for blockchain tokenization is vast, encompassing various asset classes beyond U.S. Treasurys.