BUIDL Reaches $500 Million Market Cap Leading Tokenized Treasury Funds

• BlackRock’s BUIDL fund reaches a $500 million market cap, becoming the largest tokenized treasury fund.
• Ondo Finance, the largest holder, boosted BUIDL’s value, now holding $173.7 million in tokenized Treasurys.
• BUIDL maintains a stable $1 value, pays daily dividends, and collaborates with Securitize for direct investor payouts.

BlackRock’s USD Institutional Digital Liquidity Fund, known as BUIDL, has achieved a significant milestone, reaching a $500 million market cap. This marks the first time a tokenized treasury fund has reached such a milestone. Launched less than four months ago, BUIDL currently holds $502.8 million worth of tokenized Treasurys, according to Ethereum block explorer Etherscan.

BUIDL surpassed the Franklin OnChain U.S. Government Money Fund (BENJI) to become the world’s largest tokenized treasury fund in late April, just six weeks after its launch on March 15. It has maintained its top position ever since. Ondo Finance, a real-world asset tokenization firm, recently purchased more BUIDL, pushing it over the $500 million mark. Ondo Finance uses BUIDL to back its OUSG token, which is currently the largest holder of BUIDL with $173.7 million.

BlackRock designed BUIDL to offer a stable value of $1 per token. The fund is pegged 1:1 with the U.S. dollar and pays daily accrued dividends directly to investors each month. This is facilitated through its partnership with the real-world asset tokenization platform Securitize. The fund was created to provide qualified investors the opportunity to earn U.S. dollar yields by subscribing to the fund through Securitize Markets, LLC.

On July 8, IntoTheBlock data revealed that BUIDL had $491 million in Assets Under Management (AUM), showcasing sustained growth. As of July 2, BUIDL’s AUM was $486.46 million, which has since increased to $491.83 million. This growth occurs amidst a broader crypto market downturn, highlighting BUIDL’s resilience and investor confidence.

In addition to Ondo Finance, stablecoin issuer Mountain Protocol holds BUIDL to back its permissionless yield-bearing stablecoin, USDM. The collaboration between BlackRock and Securitize has made BUIDL a pivotal player in the tokenized treasury fund market, providing a reliable and stable investment option amidst the volatility in digital currencies.

Overall, BUIDL’s rapid rise to a $500 million market cap underscores the increasing interest and confidence in tokenized assets as a viable investment vehicle. This milestone not only marks a significant achievement for BlackRock but also signifies a notable development in the broader financial landscape.