BlackRock BUIDL Tokenized Fund Surpassing $240 Million in One Week

In a move that reflects the growing acceptance and interest in cryptocurrencies in the traditional financial world, the BUIDL tokenized fund, introduced by giant BlackRock, has recorded an impressive inflow of more than US$240 million in deposits. The fund, which debuted just a week ago, is already attracting attention for its unique value proposition.

Offered by Securitize Markets, which operates under an alternative trading system recognized by the US Securities and Exchange Commission, BUIDL enables its investors, through a secure and regulated structure, to transfer tokens to other validated addresses. With a value set at $1 per share, the fund generates daily dividends from investments in cash, US Treasury bonds and repurchase agreements, with the income distributed in new tokens monthly.

Carlos Domingo, the founder and CEO of Securitize, highlighted the security and credibility of the fund by saying: “It is very institutional, it is managed by the largest asset manager in the world. There is no counterparty risk for any crypto company.”

BUIDL’s impact on the market is already notable, with Ondo Finance, a crypto startup, contributing $95 million to the fund. This massive investment not only demonstrates confidence in the BUIDL proposition, but also underlines the growing interest in the cryptoasset sector as a legitimate and promising investment option.

Furthermore, the launch of BUIDL led to a significant increase in total tokenized US Treasury bonds, increasing the market value to almost US$1 billion. This growth of more than 35% since the introduction of the BlackRock fund clearly illustrates the disruptive potential of tokenized funds in the traditional financial market.

While Franklin Templeton’s OnChain US Government Money Fund pioneered the field of tokenized money market funds in the US, BUIDL already represents 24.6% of that market, indicating a potential shift in industry leadership. The ability to transfer tokenized shares between investors adds a new level of flexibility and accessibility to fund investing.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.