BlackRock's tokenized asset fund, BUIDL, has overtaken the rival offering from Franklin Templeton just six weeks after its launch.
BlackRock's tokenized asset fund, BUIDL, has overtaken the rival offering from Franklin Templeton just six weeks after its launch. The BlackRock USD Institutional Digital Liquidity Fund, launched on the Ethereum network under the BUIDL token, has seen significant growth and now holds $375 million in deposits, with $70 million of inflows recorded last week, according to blockchain data from rwa.xyz. Since its introduction on March 21, the fund, developed in collaboration with tokenization services platform Securitize, has captured nearly 30% market share.
In contrast, the Franklin OnChain U.S. Government Money Fund, represented by the BENJI token, has experienced minor outflows during the same period, leading to a decline in assets under management to $368 million. The change in rankings can be primarily attributed to the substantial growth of Ondo Finance (ONDO). Ondo Finance's tokenized Treasury offering, OUSG, leverages BlackRock's token as a reserve asset and has attracted $50 million in inflows within a week.
The rapid growth of BlackRock's tokenized fund comes as the tokenization of real-world assets (RWA) gains traction among digital asset firms and traditional financial giants. Tokenization, which involves representing conventional assets like bonds and credit on blockchain platforms through tokens, offers advantages such as faster settlements, increased operational efficiency, and enhanced transparency.
Among various RWAs, U.S. Treasuries have emerged as a popular choice for tokenization efforts. As a low-risk and well-established instrument, U.S. Treasuries allow investors to park their on-chain cash and earn stable yields without leaving the blockchain ecosystem. The tokenized Treasury market has witnessed significant growth, expanding from around $100 million in early 2023 to nearly $1.3 billion, partly driven by BlackRock's entry into the competition.
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