BlackRock’s BUIDL Reaches $1.5B AUM, Driven by 129% Growth in 30 Days

BlackRock’s tokenized US Treasury fund, BUIDL, has achieved a significant milestone by reaching nearly $1.5 billion in assets under management (AUM). This surge underscores the growing institutional interest in the tokenization of real-world assets (RWAs). The fund, which was launched on the Securitize platform in March 2024, has seen a remarkable 129% increase in AUM over the past 30 days, highlighting the rapid growth and demand for digital financial products.

BUIDL’s success is particularly notable as it continues to lead the RWA sector. The majority of its supply, over $1 billion or 86.46%, is minted on the Ethereum blockchain, emphasizing Ethereum’s dominance in the asset minting landscape. Other blockchains such as Avalanche and Aptos account for approximately $56 million of the fund’s total supply, each representing around 3.6%. The remaining assets are hosted on Ethereum Layer-2 solutions like Polygon, Arbitrum, and Optimism.

The growing investor participation in BUIDL is another indicator of its success. In the last month, the number of holders increased by 19%, resulting in a total of 62 active participants. This rise illustrates an increasing trust in blockchain-based financial solutions among investors and underscores a burgeoning institutional interest in the tokenization of bonds and credit, compelling traditional finance to adapt to the digital landscape.

Meanwhile, Fidelity has filed a proposal with the US Securities and Exchange Commission (SEC) to introduce a blockchain-based share class of its Treasury money market fund named “OnChain.” This new structure will utilize blockchain technology as both a transfer agent and settlement layer, aiming to enhance operational efficiency within traditional fund management. The OnChain class of the fund currently uses the Ethereum network as the public blockchain, with the possibility of using other public blockchain networks in the future, subject to eligibility and other requirements.

Fidelity’s decision to enter the tokenization space aligns with a significant trend observed across institutional finance, as companies pivot towards blockchain solutions to tokenize various financial instruments. This advancement is poised to improve efficiency, enable 24/7 settlements, and elevate overall transparency. Despite broader market challenges, interest in RWAs remains robust, with the total RWA market growing by 18.29% in the past month, climbing to $19.23 billion, while the number of RWA holders has surged by 5%, nearing 91,000.

Currently, BlackRock’s BUIDL dominates the RWA market cap, standing ahead of competitors like Hashnote’s USDY at $784 million and Tether Gold (XAUT) at $752 million. Overall, US Treasuries comprise $4.76 billion of the total market value, while private credit leads with $12.2 billion, illustrating a diversified landscape for RWA assets.

As BlackRock’s BUIDL and Fidelity’s OnChain initiative exemplify the shift towards tokenization in finance, the growing interest in RWAs signifies a pivotal moment in the evolution of traditional asset management. These developments, anchored by substantial growth metrics, highlight a future where digital assets could reshape investment strategies across the board. The increasing institutional interest in tokenization reflects a broader trend towards digital transformation in the financial sector, driven by the need for greater efficiency, transparency, and accessibility in asset management.