According to CoinDesk, BlackRock, a major asset management company, has had a strong start with its first tokenized asset fund, gaining significant market share in the blockchain-based tokenized US Treasury market within a week of its debut.
Blockchain data shows that as of Wednesday (27th), BlackRock’s tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), has attracted $245 million in deposits. The fund has climbed to the second position in market share among similar products, only behind Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX), which has $360 million in deposits, according to rwa.xyz.
Tom Wan, an analyst at 21Shares, a digital asset management company, stated that with the growth of BUIDL, we may soon witness a tokenized US Treasury market worth $1 billion.
The BUIDL token, issued by BlackRock in collaboration with asset tokenization platform Securitize on the Ethereum blockchain, represents an investment in funds holding US Treasury securities and repurchase agreements. Priced at $1, holders can receive income generated from the underlying assets in the form of new tokens. The product primarily targets institutional investors.
In related news, it is reported that the real-world asset (RWA) tokenization platform Ondo Finance has transferred $95 million in funds to BUIDL. This transfer aims to move its asset support for its own government bond tokens from a less ideal short-term government bond ETF to a blockchain-based fund, enabling instant settlement and 24/7 subscriptions and redemptions.
Related articles: “BlackRock Launches First Tokenized Fund BUIDL on Ethereum! Offers Stable Value and Monthly Dividends” and “Report: BlackRock’s Tokenized Fund Brings Legitimacy to Ethereum” and “US Bank Report: Tokenization of Real-World Assets is a Key Driver for Digital Asset Adoption”.
