BlackRock’s BUIDL Fund Attracts $245M: Tokenized Treasury Market Eyes $1B Amid Growing Interest

• The newly launched BUIDL, a BlackRock tokenized fund, is attracting large investors, with more than $245 million flowing into the fund.
• Analysts believe that this fund will soon reach $1 billion, propelling Ethereum, Polygon, Solana, and other blockchains.

BlackRock’s newly launched tokenized asset fund, BUIDL, is recording massive inflows, with recent data showing that over $245 million has flowed into the fund. BlackRock’s product, tickered “BUIDL,” was launched on Ethereum on March 20 and reached a market cap of over $244.8 million on Tuesday. This makes the fund the second-largest tokenized government securities fund.

As CNF reported, BlackRock has launched the BUIDL Fund on Ethereum, its first tokenized fund on a public blockchain, fully collateralized by cash and US Treasury bonds, with customers earning USD yields. Investors can now trade their fund shares on a transparent blockchain with instant settlement, with BNY Mellon facilitating interoperability with traditional markets.

BlackRock’s BUIDL token is a digital asset on the Ethereum blockchain. It represents ownership in a fund that invests in safe, short-term U.S. government debt like Treasury bills and repurchase agreements. The token’s value is tied to $1, and holders earn returns from the fund’s holdings, paid out in BUIDL tokens. This investment option is currently only available to large institutional investors.

Tokenized US Treasuries on public blockchains surpass $1 billion in AUM

Franklin Templeton’s BENJI leads with $360 million, while BlackRock’s new “BUIDL” tokenized fund has grown from $40 million to $245 million in just a week.

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Boston Consulting Group estimates that capital market tokenization will become a $16 trillion market by 2030. BlackRock believes that this could be made more efficient using blockchain technology. Identifying this opportunity, BlackRock is ready to seize the trillion-dollar opportunity.

Since launching its Bitcoin ETF, BlackRock has taken a great interest in the cryptocurrency market and blockchain technology. The world’s largest asset manager, with nearly $10 trillion in assets under management, has further filed for an ether ETF, with the U.S. SEC still considering its approval. With BUIDL, the asset manager demonstrated its trust in Ethereum by launching on the second-largest cryptocurrency platform.

In addition to U.S. treasuries, the asset manager is eyeing stocks, real estate, and many other assets that can also be tokenized. This has led to some big predictions. Bitcoin advocate Willy Woo has suggested that a chunk of the $9.5 trillion in assets under management by BlackRock will find its way into Bitcoin and other cryptos.

The analyst attributes this to the “Great Wealth Transfer,” which is expected to significantly boost Bitcoin adoption, with a potential $1 trillion influx from just 1% of this wealth. As CNF highlighted, baby boomers are poised to pass down $90 trillion to millennials, heralding the wealthiest generation in history.

As the business world looks to tokenize traditional assets, numerous blockchains are emerging as top contenders, including Ripple, Ethereum, Polygon, Chainlink, and VeChain. The platforms offer different levels of technological prowess that could help builders and investors distinguish them, but with trillions of dollars in investment set to flow into the industry, many, if not all, will see huge value flow.