BlackRock's BUIDL enters the market, over $1.1 billion worth of U.S. Treasuries tokenized

Since the world's largest asset management firm, BlackRock, announced the official launch of its first tokenized fund on the public Ethereum blockchain—the BlackRock Institutional Cash Fund (BUIDL). Currently, U.S. Treasury bonds worth over 1.1 billion USD exist on Ethereum, Polygon, Solana, and other blockchains.

$1.1 Billion Government Bonds Tokenized

According to data compiled by 21.co, the parent company of 21Shares, on the Dune Analytics dashboard, there are currently $1.1 billion worth of government bonds tokenized on-chain through 17 products. Topping the list is Franklin Templeton's OnChain U.S. Government Money Fund FOBXX, established on April 6, 2021. The fund invests 99.5% of its total assets in U.S. government securities, cash, and repurchase agreements fully collateralized by U.S. government securities or cash. The current total assets amount to $360 million.

FOBXX is the first U.S.-registered mutual fund that processes transactions and records share ownership on a public blockchain. It was initially issued on the Stellar blockchain. In April last year, it expanded to Polygon and may also be issued on the Avalanche and Aptos blockchains, as well as on Ethereum Layer 2 solution Arbitrum.

Traditional Finance vs. DeFi Real-World Asset RWA Battle: Franklin FOBXX vs. Ondo Finance

BUIDL Catching Up Fast

In second place is BlackRock's "BUIDL," launched on Ethereum on March 20, with a current market value of $275 million. The fund adopts a private placement method with a minimum subscription amount of $5 million.

BlackRock launched the tokenized fund BUIDL on Ethereum and strategically invested in Securitize

Ondo Finance Becomes BUIDL's Largest Investor

The recent $79.3 million funds deposited into BlackRock's fund were deposited by the decentralized investment platform Ondo Finance, focusing on RWA. According to data from Etherscan, the company has deposited nearly $95 million in four transactions, accounting for 34% of the total issuance.

Ondo Finance's OUSG is a cash management and settlement tool for global institutions and high-net-worth individuals, including institutions and high-net-worth individuals in the U.S., with a licensed secondary market, structured as an investment fund. OUSG previously invested in BlackRock's short-term Treasury ETF with the code SHV and tokenized it on-chain. Ondo Finance recently announced the majority of OUSG's assets will be reallocated to BUIDL, stating that the tokenization of traditional securities on public blockchains represents the next significant step in the evolution of financial markets.