Markets
BlackRock’s BUIDL Fund Nears $500M Despite Crypto Market Struggles
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is approaching $500 million in assets under management.
The tokenized fund, represented by the BUIDL token on Ethereal The network now holds $491 million in assets, according to Dune Analytics data.
Blockchain analytics platform IntoTheBlock noted that this milestone comes during a period of price wars for major digital assets such as Bitcoin and Ethereum. declared:
“While the cryptocurrency market is struggling, BlackRock’s BUIDL fund, which operates on the Ethereum network, continues to attract new investors. The fund requires a minimum entry of $5 million.”
The fund, created with tokenization services platform Securitize, invests 100% of its total assets in cash, U.S. Treasury bills and repurchase agreements, allowing investors to earn returns by holding the token on the blockchain.
In particular, it has captured nearly 30% of the market since its launch in March. However, on-chain data shows that only 16 wallets hold the fund’s tokens, with 75% of the supply concentrated among the top 5 holders.
Interestingly, Ondo Finance, an institutional-grade on-chain finance company, owns approximately 44.8% of the BUIDL fund. These funds are distributed between its two wallets, OUSG Holding and OUSG Instant Manager.
Interest in tokenization is growing.
BlackRock’s rapid growth of BUIDL highlights the growing institutional interest in the tokenization of real-world assets (RWAs) such as bonds and receivables.
Over the past year, this process has garnered Wide adoptionwith a recent survey by Ernst & Young showing that 50% of institutional investors are interested in tokenized assets. The report indicated that investors are flocking to these assets because they have the benefit of diversifying the portfolio and can also provide greater liquidity.
It added:
“Tokenization alternatives have the potential to enable access to a broader range of investors through lower minimums, and also the ability to enable diversification for larger institutional investors as they allocate more alternatives and drive liquidity once secondary markets are established.”
According to data from Dune Analytics, there is now more than $1.5 trillion worth of U.S. Treasuries on blockchain networks such as Ethereum, Polygon, and Solana.