BlackRock's BUIDL Vaults Ascend to Record Heights, Surpassing Franklin Templeton's Treasury Fund with $375M

BlackRock's tokenized asset fund BUIDL has emerged as the largest of its kind, surpassing Franklin Templeton's similar offering within just six weeks of its launch.

Impressive Growth for BUIDL

The BlackRock USD Institutional Digital Liquidity Fund, represented by the BUIDL token on the Ethereum network, and backed by U.S. Treasury bills, repo agreements, and cash, has witnessed a significant surge. With $375 million in deposits and a $70 million increase in inflows last week, it now commands nearly 30% of the market share since its debut on March 21. The collaboration with tokenization services platform Securitize has played a crucial role in its success.

Franklin Templeton's Decline

In contrast, Franklin Templeton's OnChain U.S. Government Money Fund, represented by the BENJI token, has experienced a decline to $368 million in assets under management after facing minor outflows during the same period.

Ondo Finance's Impact

The shift in dominance can be attributed to the growth of Ondo Finance (ONDO), whose tokenized Treasury offering OUSG utilizes BlackRock's token as a reserve asset. OUSG attracted $50 million in inflows within a week, contributing significantly to BlackRock's ascendancy.

Tokenization Trends

The rapid growth of BlackRock's BUIDL reflects the increasing interest in tokenizing conventional assets like bonds and credit. This trend, known as the tokenization of real-world assets (RWA), appeals to both digital asset firms and traditional finance giants. Benefits such as faster settlements, enhanced operational efficiency, and improved transparency drive this adoption.

Tokenized Treasuries as a Gateway

Tokenization efforts, particularly in U.S. Treasuries, have gained momentum as a low-risk option for investors to earn stable yields within the blockchain ecosystem. The tokenized Treasury market has surged from nearly $100 million to close to $1.3 billion since early 2023, propelled in part by BlackRock's entry into the arena.

BlackRock's BUIDL tokenized asset fund has quickly become the largest in its category, outpacing Franklin Templeton's offering. Its rapid growth underscores the increasing popularity of tokenizing conventional assets, with U.S. Treasuries serving as a significant gateway for this transformation.