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BlackRock's BUIDL surpasses Franklin's FOBXX in market value within six weeks, becoming the world's largest tokenized fund.

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BlackRock

According to the Dune dashboard by 21Shares, the asset management giant BlackRock's first tokenized fund, BUIDL, has surpassed Franklin Templeton's FOBXX, which has been in existence for over a year, in less than six weeks since its launch. Additionally, the RWA protocol TVL is also approaching $8 billion.

Can BlackRock's tokenized fund BUIDL achieve real-time settlement? Why is this a significant step for the industry?

BUIDL Surpasses FOBXX to Become the World's Largest Tokenized Fund

Since BlackRock issued the "BUIDL USD Institutional Digital Liquidity Fund" on Ethereum at the end of March this year, focusing on cash, US Treasury bonds, and repurchase agreements, it has once again attracted attention to tokenized funds.

Now, according to data from the world asset tokenization analysis platform RWA.xyz, in less than six weeks after its launch, BUIDL officially surpassed Franklin Templeton's "Franklin OnChain US Government Money Fund FOBXX" this week to become the current world's largest tokenized fund.

Top three tokenized funds in the RWA market

Records show that BUIDL's current market value is approximately $384 million, exceeding FOBXX's accumulated $368 million over the past year; the former has grown by 37.4% in the past month, while the latter has only grown by 2.1%.

Additionally, the third-place is Ondo Finance's tokenized public bond product "OUSG," with a market value of $136 million, showing a remarkable 53.5% growth within the month, continuing to catch up rapidly.

The Real-world Asset (RWA) Battle between Traditional Finance and DeFi: Franklin FOBXX vs. Ondo Finance

In January this year, BlackRock CEO Larry Fink had already revealed plans to launch tokenized products, pointing out the advantages of tokenization:

US Treasury bonds are just a small part of it, stocks, real estate, and other assets can also be tokenized, and moving to the chain can enhance the efficiency of the capital market.

RWA Protocol TVL Approaching $8 Billion

On the other hand, blockchain data company Messari also tweeted that due to the market's preference for debt-based high-yield investments, the RWA protocol has seen explosive growth in the past year, with the total value locked (TVL) approaching $8 billion at one point.

The report indicates that there are currently around $1.29 billion in tokenized US Treasury bonds and debt securities, showing an 80% growth since the beginning of this year, with significant contributions from digital securities issuance platforms Securitize and Ondo.

Institutions Bullish, but Will the Public Buy In?

However, even though RWA has become a hot topic, Tom Wan, a research analyst at 21.co, still pointed out the current situation in the market:

Currently, the demand for these tokenized products among general investors is low, one of the main reasons being "insufficient liquidity."

Nevertheless, Wan remains optimistic about the RWA market, expressing that the share of tokenized government bonds in the RWA market will increase from the current 1.4% to 10%:

At the same time, it is expected that other ETF issuers will follow in the footsteps of BlackRock and Franklin to tokenize more investment products on the chain.

He also adds, "In the tokenization field, mid-to-late-stage private equity firms will have the greatest growth potential."