Tokenized US Treasuries are rapidly gaining traction, with blockchain technology transforming how investors access fixed-income markets. The growing popularity of tokenized US Treasuries has been highlighted by a remarkable 92% surge in market activity, largely driven by BlackRock’s BUIDL fund.
According to RWA.xyz, a real-world asset analytics platform, the value of tokenized US Treasury securities on public blockchains rose from $4.01 billion at the start of the year to approximately $5.95 billion today. This significant gain underscores institutional interest in integrating blockchain with traditional financial instruments.
Ethereum sits at the core of this transformation, leading the field with $4.3 billion in tokenized assets hosted on its blockchain. Stellar and Solana follow with $474 million and $273 million, respectively, supporting the narrative of blockchain’s growing credibility in dealing with real-world financial assets.
BlackRock’s BUIDL Fund Takes the Spotlight
One of the most significant contributors to this market surge is the USD Institutional Digital Liquidity Fund by BlackRock, also known as BUIDL. This fund alone accounts for $2.47 billion in assets under management, seizing a substantial 42% share of the tokenized treasury market. Notably, the BUIDL fund experienced 92% growth over the past month, indicating accelerated interest and trust from major players.
Ethereum is the primary platform for the BUIDL fund, holding about $2.3 billion or over 91% of the fund’s assets. The remaining assets are distributed across various Layer-2 networks and alternative blockchains, including Arbitrum, Polygon, Optimism, Aptos, and Avalanche. Both Aptos and Avalanche have approximately $53 million worth of the fund’s assets allocated to them.
Launched in March 2024, BUIDL pays daily dividends derived from short-term US Treasury holdings and is pegged 1:1 with the US dollar. This setup not only offers yield but also functions similarly to a stablecoin, combining liquidity with security.
Traditional Finance Embraces Blockchain Integration
BlackRock’s impressive results with BUIDL exemplify a broader institutional sprint toward tokenized real-world assets. Financial experts believe these digital instruments offer an effective link between legacy finance systems and decentralized infrastructure.
Other financial giants are also entering the fray. Franklin Templeton, for example, runs a tokenized treasury fund valued at roughly $706 million. Meanwhile, Fidelity is preparing its entry with an SEC filing for a blockchain-integrated Treasury money market fund named “OnChain.”
This surge in activity indicates a substantial shift in how traditional financial institutions are seeking to modernize their services. By leveraging blockchain’s capabilities—transparency, decentralization, and real-time settlement—they can offer improved financial products to investors.
With tokenized treasuries climbing toward the $6 billion mark and dominant players like BlackRock leading the charge, the fusion of traditional assets with blockchain technology is proving to be more than a trend—it’s an evolution of finance itself.
