BlackRock’s BUIDL Fund Surges 56.4% to $1 Billion in One Year
2min read BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, has reached a significant milestone by attracting over $1 billion in assets under management (AUM) within just one year of its launch. This achievement underscores the growing interest and investment in tokenized treasuries, a sector that has seen substantial growth.
The BUIDL fund experienced a remarkable 56.4% surge in assets over the past 30 days, propelling it to surpass the $1 billion mark. This growth was driven by a significant allocation from Ethena Labs, which contributed $200 million to the fund. Ethena Labs, the creator of the USDtb stablecoin, holds over 90% of its reserves in BUIDL tokens, with additional backing from stablecoins like USDC and USDT. The USDtb stablecoin is designed to maintain a stable price of $1 per token, similar to traditional stablecoins.
Launched in March of the previous year in partnership with Securitize, BUIDL is designed for qualified institutional investors, offering them exposure to U.S. dollar yields on-chain. The fund has quickly become one of the top tokenized funds tracking on-chain Treasuries. Apart from Ethena Labs, Ondo Finance also leverages BUIDL in its financial offerings, issuing a money market fund backed by BUIDL, which accounts for a major portion of BUIDL’s balance.
Ask Aime: What is the significance of BlackRock's BUIDL achieving $1 billion in assets under management?
BUIDL’s rapid ascent to over $1 billion in assets has been a key driver in the tokenized treasuries market, which has now exceeded $4.4 billion. Other competing funds from Franklin Templeton, Ondo Finance, and Superstate also play an important role in the sector's growth. Franklin Templeton’s Franklin OnChain US Government Money Fund (FOBXX) reported a 16% increase in total asset value in the last 30 days, but it now ranks as the third-largest tokenized money market fund with a market cap of approximately $689 million. Hashnote’s USYC fund, which currently holds $868 million in assets, is the second-largest tokenized U.S. Treasury asset, but its asset value declined by 24.35% over the past month. Ondo Finance’s USDY is another major player in the tokenized treasuries sector, with its market value shooting up 53% in the last 30 days, exceeding $592 million.
Securitize has partnered with RedStone, a DeFi-focused oracle provider, to enhance the use cases of BUIDL in DeFi. RedStone will deliver price feeds for BUIDL, enabling its integration into money market exchanges and collateralized DeFi platforms. This partnership aims to expand the utility of BUIDL within the decentralized finance ecosystem, providing more opportunities for institutional investors to engage with tokenized assets.
BlackRock CEO Larry Fink has expressed support for the tokenization of bonds and stocks, noting its potential to democratize investing by making financial assets more accessible to a wide range of individuals. The tokenization of securities offers benefits such as enhanced liquidity, increased transaction efficiency, and improved transparency and security. These tokenized securities can provide investors with voting rights and profit-sharing mechanisms, similar to traditional securities but with the added efficiency of blockchain technology.
