Markets
BlackRock’s Tokenized RWA Offering Surpasses $500 Million as Tokenized Treasury Market Surges
Global asset manager BlackRock’s BUIDL token, issued in partnership with Securitize and backed by U.S. Treasuries, surpassed a market value of $500 million on Monday, according to data from the Ethereum blockchain. Etherscan show.
It is the first tokenized treasury product to reach the milestone, taking just four months since its debut in March.
The growth of BlackRock’s tokenized product has been driven by other decentralized finance (DeFi) protocols such as Ondo Finance and Mountain Protocol using BUIDL as a backing asset for their own yield products. Digital asset exchanges such as FalconX and, more recently, Hidden Road, have also added the token to collateral assets for their institutional investor clients on their networks.
“BUIDL continues to become the foundation tokenized asset for many more innovative RWA products to be developed,” Carlos Domingo, CEO of Securitize, told CoinDesk in an email.
U.S. Treasuries are at the forefront of the tokenization of real-world assets, as digital asset companies and global financial heavyweights race to put traditional instruments such as government bonds, private credit and funds on the blockchain to achieve faster settlements and operational efficiencies.
Many digital asset companies and investors are looking to these Treasury-backed offerings as a low-risk instrument where they can park their blockchain-based money and earn a steady yield without leaving the blockchain ecosystem.
The overall market for tokenized securities, including BUIDL, has more than doubled this year, growing to $1.8 billion as of June 7 from $780 million in January, according to data provider rwa.xyz show.
BlackRock’s offering is leading the way among tokenized products, claiming approximately 27% of the market share. Some large players also enjoyed significant inflows last month, rwa.xyz shows. Franklin Templeton’s offering increased 16% to $400 million, while Hashnote and OpenEden’s offering grew 40% and 89%, respectively.