US Treasury securities valued at more than $1 billion have been tokenized on well-known blockchains like Ethereum, Polygon, and Solana. A portion of this noteworthy accomplishment might be ascribed to the launch of BlackRock’s USD Institutional Digital Liquidity Fund, or BUIDL.
When it was first introduced on Ethereum on March 20, BUIDL quickly grew to be the second-largest fund for tokenized government assets, with a market value of $244.8 million.
With $360.2 million in U.S. Treasurys, Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX) leads the market, and BlackRock’s new fund is trailing behind it. The $95 million round of investments from Ondo Finance greatly accelerated BUIDL’s expansion. This action not only damaged BlackRock’s reputation but also brought attention to Ondo Finance’s sizeable 38% ownership of the fund.
Tokenized government treasuries are becoming more and more appealing as a viable substitute for stablecoin yields, particularly in an environment with high interest rates. The CEO of BlackRock, Larry Fink, is in favor of the notion that financial markets become more efficient through blockchain tokenization. Experts concur, projecting a $16 trillion market by 2030.
Tokenization include not only US Treasurys but also stocks, real estate, and several other assets. With $700 million of the market, Ethereum is the industry leader in the tokenization of actual assets. To further diversify the market for tokenized financial products, Franklin Templeton’s FOBXX is becoming more visible on Stellar and Polygon.
