Tokenized Treasury Funds Hit $2 Billion Milestone
Tokenized Treasury funds have reached a significant milestone, surpassing $2 billion in market capitalization. This surge in value has been largely fueled by the rapid growth of offerings such as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
Recent data released by RWA.xyz indicates a growing trend towards digital representations of U.S. government bonds, which are now being traded as tokens on various blockchain platforms, with ethereum being a prominent choice.
BlackRock’s BUIDL Market Cap Soars to $500 Million
The $2 billion market cap achievement comes just five months after hitting the $1 billion mark. Notably, BlackRock’s BUIDL fund has played a significant role in driving this growth, reflecting the broader investor interest in diversifying portfolios through tokenized assets.
Statistics reveal a 2.61% increase in total market cap over the past week, with ethereum-based products commanding a hefty $1.5 billion market share.
BlackRock's fund quickly amassed over $500 million in market cap following its launch, establishing its dominance in the tokenized treasuries landscape. It was closely followed by Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX) and Ondo Finance’s USDY.
Largest Holder of On-Chain Assets
BlackRock has recently overtaken Grayscale as the biggest holder of on-chain assets, primarily through its exchange-traded funds (ETFs). This shift signifies BlackRock's expanding influence within the digital asset space.
The rise in BlackRock’s ETF holdings mirrors the increasing institutional interest in digital assets like bitcoin and ethereum, supported by the growing approval and adoption of ETFs in the market.
According to Arkham Intelligence, as of August 16, BlackRock’s ETF holdings in IBIT and ETHA have exceeded $21.22 billion, surpassing Grayscale’s combined holdings of $21.20 billion across its GBTC and ETHE funds.
While Grayscale manages a larger overall balance, primarily through its GDLC fund with around $460 million in assets, the fund's unique structure enables it to maintain a broader market reach.
