BlackRock’s BUIDL Achieves $1.5 Billion in Assets as Institutional Interest in Tokenization Grows

• BlackRock’s tokenized US Treasury fund, BUIDL, has surged to nearly $1.5 billion in assets under management, showcasing a significant advancement in RWA tokenization.

• The fund continues to lead the real-world asset (RWA) sector, with most of its supply minted on Ethereum, emphasizing the blockchain’s dominance.

• Meanwhile, Fidelity has filed to launch a blockchain-based share class of its Treasury money market fund, further indicating institutional interest in RWA tokenization.

BlackRock’s BUIDL fund is reshaping the RWA landscape as it reaches nearly $1.5 billion in AUM, while Fidelity explores blockchain solutions in asset management.

BlackRock’s BUIDL Leads the RWA Sector

According to data from RWA.xyz, BUIDL’s AUM has increased by almost 129% over the last 30 days, bringing it to $1.4 billion. This milestone marks a notable achievement in the rapid growth of tokenized assets.

This noteworthy performance indicates that in just one year since its launch on the Securitize platform in March 2024, BUIDL has exceeded the $1 billion mark, reflecting an intensified demand for digital financial products.

While BUIDL has expanded its presence across multiple blockchains, it is important to note that the majority of its supply—over $1 billion, or 86.46%—is still secured on Ethereum, showcasing the network’s robust infrastructure for asset minting.

Other chains like Avalanche and Aptos account for approximately $56 million of the fund’s total supply, each representing around 3.6%. Additional contributions stem from Ethereum Layer-2 solutions such as Polygon, Arbitrum, and Optimism, which host the remaining assets.

BlackRock BUIDL AuM. Source: RWA.xyz

The growing investor participation is another telling indicator of BUIDL’s success. In the last month alone, the number of holders increased by 19%, resulting in a total of 62 active participants. This rise illustrates an increasing trust in blockchain-based financial solutions among investors.

Market observers are pointing out that these statistics underscore a burgeoning institutional interest in the tokenization of bonds and credit, compelling traditional finance to adapt to the digital landscape.

Fidelity Joins the Tokenization Race

BUIDL’s impressive milestone coincides with Fidelity’s strategic entry into the tokenization space. Recently, the asset management giant filed a proposal with the US Securities and Exchange Commission (SEC) to introduce a blockchain-based share class of its Treasury money market fund named “OnChain.”

This new structure will utilize blockchain technology as both a transfer agent and settlement layer, aiming to enhance operational efficiency within traditional fund management.

According to the filing, “The OnChain class of the fund currently uses the Ethereum network as the public blockchain. In the future, the fund may use other public blockchain networks, subject to eligibility and other requirements that the fund may impose,” indicating flexibility in its operational framework.

Fidelity’s decision aligns with a significant trend observed across institutional finance, as companies pivot towards blockchain solutions to tokenize various financial instruments. This advancement is poised to improve efficiency, enable 24/7 settlements, and elevate overall transparency.

Despite broader market challenges, including an 11% year-to-date decline in Bitcoin prices, interest in RWAs remains robust. On-chain data reveals that the total RWA market grew by 18.29% in the past month, climbing to $19.23 billion, while the number of RWA holders has surged by 5%, nearing 91,000.

Tokenized Real World Asset AuM (Source: RWA.xyz)

Currently, BlackRock’s BUIDL dominates the RWA market cap, standing ahead of competitors like Hashnote’s USDY at $784 million and Tether Gold (XAUT) at $752 million. Overall, US Treasuries comprise $4.76 billion of the total market value, while private credit leads with $12.2 billion, illustrating a diversified landscape for RWA assets.

Conclusion

As BlackRock’s BUIDL and Fidelity’s OnChain initiative exemplify the shift towards tokenization in finance, the growing interest in RWAs signifies a pivotal moment in the evolution of traditional asset management. These developments, anchored by substantial growth metrics, highlight a future where digital assets could reshape investment strategies across the board.