More than $1B in US Treasurys is now chained
More than $1 billion worth of US Treasuries are currently available across Ethereum, Polygon, Solana and other blockchains, thanks in part to the recently launched BlackRock USD Institutional Digital Liquidity Fund.
BlackRock's product ticker “BUIDL” was launched on Ethereum on March 20 and currently has a market cap of $244.8 million. According to Eterscan, four transactions in the fund totaling $95 million during the week boosted the fund's momentum, making it the second-largest government securities fund.
BUIDL now trails only Franklin Templeton's 11-month Franklin Onchain U.S. Treasury Fund ( FOBXX ), which has $360.2 million in U.S. Treasuries, according to data compiled by 21Shares' parent company on a Dune Analytics dashboard.
The dashboard shows that $1.08 billion of U.S. Treasuries are now indexed across 17 products.
The latest deposit of $79.3 million to the BlackRock fund was made by real-world asset token firm Ondo Finance, which will allow for faster settlement of its own US Treasury-backed token OUSG. The firm raised a total of $95 million in deposits across four transactions, Eterscan said.
Ondo Finance now has a 38% stake in BUIDL, 21.co research strategist Tom Wan said in a March 27 X post.
BUIDL's price is pegged 1:1 to the US dollar and pays out daily accumulated dividends to investors every month. It was launched on Ethereum via the Securitization Protocol.
In its Dune dashboard, 21.co identified government treasuries that are more attractive from both a risk and return perspective given the current high interest rates.
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BlackRock CEO Larry Fink recently said that capital markets could be made more efficient with blockchain tokenization, which Boston Consulting Group estimates will be a $16 trillion market by 2030.
US Treasurys are only one piece of the pie – stocks, real estate and many other assets can also be tokenized.
Ethereum holds $700 million for all real-world assets (RWA) on-chain.
Franklin Templeton's FOBXX is listed on Stellar and Polygon, which have the second and third largest market share of tokenized products at $358 million and $13 million, respectively.
WisdomTree is another large asset management firm tokenizing RWAs, while Ondo Finance, Leveraged Finance, MatricDoc, Maple Finance and Swarm are among the blockchain-native companies operating in the space.
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