BlackRock’s Tokenized Treasury Fund Surges Past $1.4B as Institutional Adoption Grows
BlackRock’s blockchain-powered US Treasury fund, BUIDL, has witnessed a remarkable surge in adoption, with assets under management (AUM) skyrocketing to $1.4 billion in just one year. This exponential growth underscores the increasing appetite for real-world asset (RWA) tokenization, even as the broader crypto market faces volatility.
According to RWA.XYZ, BUIDL’s AUM has surged by nearly 129% in the last 30 days, propelling it past the critical $1 billion milestone. The fund, which debuted on the Securitize platform in March 2024, has rapidly established itself as a leading player in the RWA space.
Ethereum Leads, but Multi-Chain Expansion Grows
Despite its multi-chain expansion, Ethereum remains the dominant network for BUIDL, hosting over $1 billion—or 86.46%—of the total supply. Avalanche and Aptos each account for approximately $56 million, while Layer-2 solutions like Polygon, Arbitrum, and Optimism round out the rest of the distribution.
Investor participation has also expanded, with the number of holders increasing by 19% in the past month, bringing the total to 62. Analysts suggest that this reflects growing institutional confidence in tokenized financial instruments.
Fidelity Enters the Tokenization Arena
BlackRock’s success comes amid a broader industry shift, as asset management giant Fidelity has signaled its entry into the space. The firm recently filed with the US Securities and Exchange Commission (SEC) to introduce a blockchain-based version of its Treasury money market fund. Branded as “OnChain,” this new share class will leverage blockchain for settlement and transfer operations.
“The OnChain class of the fund currently operates on Ethereum but may integrate other public blockchain networks in the future, subject to eligibility requirements,” Fidelity stated in its filing.
This move highlights a growing institutional pivot toward blockchain-based finance, with major players seeking enhanced efficiency, real-time settlement, and greater transparency through tokenization.
RWA Market Expands Despite Crypto Market Challenges
While the crypto market struggles—Bitcoin is down 11% year-to-date—RWAs have demonstrated resilience. Data shows that the total RWA market has grown 18.29% in the last 30 days, now valued at $19.23 billion. The number of unique RWA holders has also increased by 5%, reaching nearly 91,000.
BlackRock’s BUIDL remains the sector’s largest fund by market capitalization, trailed by Hashnote’s USDY at $784 million and Tether Gold (XAUT) at $752 million. Meanwhile, US Treasuries account for $4.76 billion of the total RWA market, with private credit leading the pack at $12.2 billion.
As more institutional investors recognize the benefits of blockchain-powered finance, the momentum behind RWA tokenization is only expected to grow, setting the stage for further innovation in the sector.