Markets
BlackRock’s Tokenized RWA Offering Surpasses $500 Million as Tokenized Treasury Market Soars
Global asset manager BlackRock’s BUIDL token, issued in partnership with Securitize and backed by U.S. Treasuries, surpassed a market capitalization of $500 million on Monday, according to Ethereum blockchain data. Etherscan watch.
It is the first tokenized treasury product to reach this milestone, in just four months since its debut in March.
The growth of BlackRock’s tokenized product has been fueled by other decentralized finance (DeFi) protocols such as Ondo Finance and Mountain protocol using BUIDL as a backing asset for their own yield products. Digital asset brokers such as FalconX and, more recently, Hidden Road, have also added the token to the collateral assets of their institutional investor clients across their networks.
“BUIDL continues to become the foundational tokenized asset upon which many other innovative RWA products will be built,” Securitize CEO Carlos Domingo told CoinDesk in an email.
U.S. Treasuries are at the forefront of real-world asset tokenization, as digital asset firms and global financial heavyweights race to bring traditional instruments such as government bonds, private credit and funds onto blockchain, in a bid to achieve faster settlements and operational efficiencies.
Many digital asset companies and investors are looking to these Treasury-backed offerings as a low-risk instrument where they can park their blockchain-based treasury and earn a stable yield without leaving the blockchain ecosystem.
The overall market for tokenized Treasuries, including BUIDL, has more than doubled this year, from $780 million in January to $1.8 billion as of June 7, according to the data provider rwa.xyz watch.
BlackRock’s offering leads the tokenized products, with a market share of about 27%. Some major players have also seen significant inflows over the past month, as rwa.xyz shows. Franklin Templeton’s offering jumped 16% to $400 million, while Hashnote and OpenEden’s offerings grew 40% and 89%, respectively.