The market capitalization of tokenized Treasury funds has exceeded $2 billion, primarily due to the sharp rise in products such as BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
According to data released by RWA.xyz, this surge highlights the increasing popularity of digital representations of U.S. government bonds, which are now being traded as tokens on various blockchain platforms, including Ethereum.
BlackRock’s BUIDL Market Cap Reaches $500 Million
In just five months, the $2 billion milestone was attained, following the $1 billion mark. This rise has been largely fueled by funds like BlackRock’s BUIDL fund, which is representative of a larger trend in which investors are using tokenized assets to diversify their holdings.
🚨 TOKENIZED TREASURIES HITS $2 BILLION MILESTONE.
— RWA.xyz (@RWA_xyz) August 24, 2024
Getting to $1 billion: 452+ days
Getting to $2 billion: 151 days
🤔 Seems bullish. pic.twitter.com/pXtRpGGFLq
Additionally, according to the data, the overall market capitalization has grown by 2.61% in the last week, with $1.5 billion of that market share going to Ethereum-based products.
Not long after its launch, BlackRock’s fund amassed a market capitalization of over $500 million, which propelled it to the forefront of the tokenized Treasury securities competition. It was succeeded by Ondo Finance’s USDY and Franklin Templeton’s OnChain U.S. Government Money Fund (FOBXX).
Largest Holder of On-Chain Assets
Through its exchange-traded funds (ETFs), BlackRock has recently surpassed Grayscale as the largest holder of on-chain assets. This was a significant change in the digital asset market, primarily due to BlackRock’s growing power.
The rise in institutional interest in digital assets such as Ethereum and Bitcoin was reflected in BlackRock’s ETF holdings. The growing market acceptance and approval of exchange-traded funds (ETFs) is indicative of this trend.
According to Arkham Intelligence, as of August 16, BlackRock’s ETF holdings in IBIT and ETHA reached $21.22 billion, surpassing Grayscale’s combined holdings of $21.20 billion across its GBTC and ETHE funds.
With its $460 million in assets under management, mostly through its GDLC fund, Grayscale manages a larger overall balance. The fund’s distinctive structure enables Grayscale to sustain a wider market reach.