Markets
BlackRock’s BUIDL fund nears $500 million amid crypto market woes
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is on track to reach $500 million in assets under management.
The tokenized fund, represented by the BUIDL token on the Ethereum network, now holds $491 million in assets, according to Dune Analytics data.
Blockchain analytics platform IntoTheBlock noted that this milestone comes during a period of price struggles for major digital assets like Bitcoin and Ethereum. declared:
“As the cryptocurrency market struggles, BlackRock’s BUIDL fund, operating on the Ethereum network, continues to attract new investors. The fund requires a minimum entry of $5 million.”
The fund, created with tokenization services platform Securitize, invests 100% of its total assets in cash, U.S. Treasuries and repurchase agreements, allowing investors to earn yield while holding the token on the blockchain.
Notably, it has captured nearly 30% of the market since its launch in March. However, on-chain data shows that only 16 wallets hold tokens from the fund, with 75% of the supply concentrated among the top 5 holders.
Interestingly, Ondo Finance, an institutional-grade blockchain finance firm, owns approximately 44.8% of the BUIDL fund. These funds are spread across its two wallets, OUSG Holding and OUSG Instant Manager.
Interest in tokenization is growing.
BlackRock’s rapid growth of BUIDL highlights growing institutional interest in the tokenization of real-world assets (RWA) like bonds and credit.
Over the past year, this process has brought together large scale adoptiona recent study by Ernst & Young showing that 50% of institutional investors are interested in tokenized assets. The report states that investors are flocking to these assets because they have the advantage of diversifying their portfolio and can also offer greater liquidity.
He added:
“Tokenization of alternatives has the potential to enable access to a broader range of investors through lower minimums, and also the ability to enable diversification for larger institutional investors as they allocate to more alternatives, and to boost liquidity once secondary markets are established.”
According to data from Dune Analytics, over $1.5 billion worth of U.S. Treasuries now exist on blockchain networks like Ethereum, Polygon, and Solana.