Mar 14, 2025

BlackRock’s BUIDL Fund Surpasses $1 Billion as Tokenized Treasury Market Expands

BlackRock’s BUIDL, a tokenized U.S. Treasury fund, has surpassed $1 billion in assets, cementing its position as a major force in the growing tokenized finance sector.

According to blockchain data from Arkham Intelligence, the milestone was reached after a $200 million allocation from crypto protocol Ethena. The BUIDL fund, developed in partnership with Securitize, exposes investors to U.S. Treasury bills, cash, and repurchase agreements via the Ethereum blockchain.

The broader market for tokenized treasuries has surged, reaching $4.4 billion in assets as of March 14. Institutional investors increasingly turn to blockchain-based financial instruments, drawn by the potential for faster settlements and operational efficiencies. In addition to BlackRock’s BUIDL, firms such as Franklin Templeton, Ondo Finance, and Superstate have expanded their offerings in the space.

BUIDL’s rapid growth reflects its role as a reserve asset for multiple yield-generating platforms. The fund is widely used as collateral on trading platforms and plays a crucial role in developing new financial instruments.

Blackrock Buidl three months market capitalization growth. Source: CoinGecko

Ethena’s USDtb Expands on BUIDL Backing

Ethena’s USDtb token, a yield-generating stablecoin backed by BUIDL tokens and USDC and USDT stablecoins, has grown to a $540 million supply. “Ethena’s decision to scale USDtb’s investment in BUIDL reflects our deep conviction in the value of tokenized assets,” said Ethena founder Guy Young.

Since its launch in December, USDtb has gained traction among investors looking for alternatives to traditional stablecoins. Unlike conventional options, USDtb generates yield, making it attractive for those seeking passive income.

Initially developed on the Ethereum blockchain, BUIDL has since expanded to multiple networks through the Wormhole bridge, including Aptos, Arbitrum, Avalanche, and Optimism. The fund’s assets are managed by major custodians such as Anchorage Digital, BitGo, and Fireblocks, while BNY Mellon oversees its cash and securities.

This multi-chain approach increases accessibility for a broader range of investors and enhances interoperability within the crypto ecosystem.

The shift toward tokenized treasuries has gained momentum among institutional investors. Prime brokers such as FalconX now accept BUIDL and similar products as collateral for leveraged trading. Ondo Finance’s OUSG and USDY products have also surged in value, nearing a combined $1 billion valuation after a 53% increase over the past month.

Analysts attribute this growth to the increasing appeal of direct Treasury exposure over non-yielding stablecoins. With U.S. Treasury yields averaging 4.28%, investors are looking for more efficient ways to access these returns through tokenized assets.

The industry’s expansion has accelerated significantly over the past year, with total tokenized Treasury assets quadrupling. Demand has grown following the U.S. election in November, as institutional players explore blockchain-based solutions for traditional financial instruments.

Explore more articles like this

Subscribe to the newsletter

CoinRock Media covers the latest crypto news, delving into the future of money.

Read More