BlackRock BUIDL Surpasses Franklin Templeton with Largest Tokenized Treasury Fund

Last Tuesday, BlackRock’s BUIDL fund, specializing in tokenized assets, reached a milestone by becoming the largest fund of its kind on the market. The BlackRock USD Institutional Digital Liquidity Fund, known by the BUIDL token on the Ethereum network, surpassed Franklin Templeton’s fund with total assets of US$375 million. This increase was driven by a significant contribution of US$70 million in the previous week, according to data from the blockchain platform rwa.xyz.

BlackRock’s fund, which was developed in collaboration with Securitize, a tokenization services platform, is based on US Treasury bonds, repurchase agreements and cash reserves. Since its launch on March 21, it has captured nearly 30% of the tokenized asset market.

On the other hand, the Franklin OnChain US Government Money Fund, represented by the BENJI token, saw a small reduction in its assets, reaching US$368 million. This decline occurred even while facing modest outflows during the same period.

.@BlackRock‘s first natively onchain fund, BUIDL, has crossed the $350M AUM mark!

Last week saw inflows of $50M into the fund, largely driven by Ondo’s $OUSG.

We continue to see strong demand for more capital efficient cash solutions across the board, and we are proud to have…

— Ondo Finance (@OndoFinance) April 29, 2024

One of the main factors for BUIDL’s success was the partnership with Ondo Finance. Ondo’s OUSG tokenized Treasury offering, which uses the BUIDL token as a reserve asset, has seen an impressive $50 million in inflows in just one week.

The phenomenon of tokenization, which involves the conversion of conventional assets such as bonds and credit into tokens on the blockchain, has attracted both digital asset companies and traditional finance giants. This innovation promises advantages such as faster and more efficient settlements and greater operational transparency.

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