Markets
BlackRock’s BUIDL fund advances toward $500 million amid crypto market woes
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is close to reaching $500 million in assets under management.
The tokenized fund, represented by the BUIDL token in Ethereum network, now holds $491 million in assets, according to Dune Analytics data.
Blockchain analytics platform IntoTheBlock noted that this milestone comes during a period of price fights for major digital assets like Bitcoin and Ethereum. stated:
“As the cryptocurrency market struggles, BlackRock’s BUIDL fund, operating on the Ethereum network, continues to attract new investors. The fund requires a minimum down payment of $5 million.”
The fund, created with tokenization services platform Securitize, invests 100% of its total assets in cash, US Treasury bills and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain.
Notably, it has captured nearly 30% of the market since its launch in March. However, on-chain data shows that only 16 wallets hold tokens from the fund, with 75% of the supply concentrated among the top 5 holders.
Interestingly, Ondo Finance, an institutional-grade on-chain finance firm, owns about 44.8% of the BUIDL fund. These funds are distributed between its two portfolios, OUSG Holding and OUSG Instant Manager.
Interest in tokenization is growing.
BlackRock’s rapid BUIDL growth highlights the growing institutional interest in the tokenization of real-world assets (RWA) such as securities and credit.
Over the past year, this process has brought together wide adoptionwith a recent survey by Ernst & Young showing that 50% of institutional investors are interested in tokenized assets. The report indicated that investors are accumulating these assets because they have the benefit of portfolio diversification and can also provide greater liquidity.
This added:
“Tokenization of alternatives has the potential to enable access to a wider range of investors through lower minimums and also the ability to enable diversification for larger institutional investors as they allocate to more alternatives and drive liquidity once secondary markets are established.”
According to data from Dune Analytics, more than $1.5 billion worth of US Treasuries now exist on blockchain networks like Ethereum, Polygon, and Solana.