BlackRock is the world’s largest asset manager and has recently introduced its first tokenized fund, BUIDL. It relies on Ethereum Blockchain to offer US Dollars for the investors to earn through the investment. It has become the world's largest tokenized treasury fund. It outperforms Franklin Templeton’s 1 year tokenized fund in less than 6 weeks.
The BlackRock USD Institutional Digital Liquidity Fund now becomes the world’s largest treasury fund which is tokenized on Ethereum Blockchain, outshadows Franklin Templeton’s tokenized fund. This six-week-old product has a market capitalization of $375 million, it suppresses the 1-year-old blockchain with 6 weeks (this week). Franklin Templeton’s on-chain US Government Money Fund (BENJI) which has a market capitalization of $368 million.
The statistics show that BUIDL took $70 million last week which includes $50 million from Ondo Finance’s OUSG token, a real-world tokenization asset. Around this time Franklin Templeton’s BENJI in AUM shrunk by 3.7%. BUIDL successively grew by 36.5% from $274 million to $375 million. However, BENJI grew by 2.1% from $360 million to $368 million.
CEO of BlackRock, Larry Fink has recently revealed that capital markets could work more efficiently and effectively if move on chains. The US treasury has worth $1.2 billion in blockchains such as Ethereum, Polygon, Solana, and many others. Besides treasury, stock, real estate, and many other assets can also be tokenized.
A research strategist Tom Wan has communicated some facts and reasons behind the low demand for these tokenized products by investors. The primary reason is thin liquidity. Another reason is uncleared benefits in the token assets due to low demand. However, the US treasury has a $140 billion stablecoin market from industry players. Hence, it will be easy to find end users. Wan also stated that tokenized assets on blockchains are 1.4% and it may reach 10% soon, as predicted. The Boston Consulting Group evaluated tokenization to be $16 trillion on the blockchain in 2030.
BUIDL stands for BlackRock’s USD Institutional Digital Liquidity Fund. It is a new evolving tokenized fund launched by BlackRock. It performs operations on Ethereum Blockchain which opens the door of earning for investors to yield US Dollars from new tokenized funds.
BUIDL provides liquidity, instant transaction, and settlement, and also maintains stability in token value. BUIDL is generally safe to invest as it trades with US treasury bills and distributes monthly tokens as dividends. It wisely manages the financial markets of tokenization.
According to the Coin Gabbar, the summary of the above says that BlackRock’s BUIDL is an innovative approach reaching a market cap of $375 million. It can be seen as blockchain as a tool for efficient capital markets. Despite low demand for tokenized products, the US treasury's presence on blockchains and a growing stablecoin market offer promise. BUIDL ensures liquidity, instant transactions, and stability through US treasury bill trading making it the world’s largest treasury fund.
Also Read: Dogecoin20 Rockets 90%: Is Dogeverse the Next Big Bang?
