Overview

BlackRock’s tokenized asset fund, BUIDL, has swiftly surpassed its competitor, Franklin Templeton’s offering, just six weeks post-launch. As of March 21, 2024, the BlackRock USD Institutional Digital Liquidity Fund, launched on the Ethereum network, now boasts $375 million in deposits. Over the last week, the fund recorded an impressive $70 million inflow, according to data from rwa.xyz. In collaboration with Securitize, a tokenization services platform, this fund has nearly captured a 30% market share.

Comparison with Franklin Templeton

In stark contrast, Franklin Templeton’s Franklin OnChain U.S. Government Money Fund, leveraging the BENJI token, noted minor outflows during the same period. Consequently, its assets under management have slightly reduced to $368 million. The growth of Ondo Finance (ONDO), which uses BlackRock’s token as a reserve asset in its tokenized Treasury offering OUSG, contributed notably to this shift. OUSG alone attracted $50 million in inflows within just one week.

The Rise of Tokenization

The surge in BlackRock’s fund performance aligns with the broader trend of real-world assets (RWA) tokenization gaining momentum among both digital asset firms and traditional finance giants. Tokenization, the process of representing traditional assets like bonds and credits on blockchain platforms through tokens, enhances settlement speeds, operational efficiencies, and transparency. Among various RWAs, U.S. Treasuries are becoming increasingly popular for tokenization due to their low risk and stable yields, facilitating investors to manage their on-chain cash efficiently.

Market Growth

The tokenized Treasury market has seen remarkable growth, expanding from approximately $100 million in early 2023 to nearly $1.3 billion, largely propelled by BlackRock’s competitive entry into the sector.

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Sources

• BlackRock’s Tokenized Asset Fund Surpasses Competitor Franklin Templeton, Yahoo! Finance
• Tokenization seen to boost alternative investments, market liquidity, Inquirer
• BlackRock’s BUIDL Becomes Largest Tokenized Treasury Fund Hitting $375M, Toppling Franklin Templeton’s, CoinDesk
• Backed Finance raises $9.5 million in Series A funding round to accelerate tokenization for institutional clients, Crypto Briefing
• Real World Assets (RWAs) have hit the crypto scene like a storm, gaining huge exposure in a relatively short space of time, and trending on Google daily. These tokenized assets utilize blockchain technology to digitise real world assets,, cryptodaily.co.uk

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