Tokenized U.S. Treasurys Exceed $1 Billion Across Various Blockchains
Summary:
The combined value of U.S. Treasurys across Ethereum, Polygon, Solana, and other blockchains has exceeded $1 billion, driven partially by the recent launch of the BlackRock USD Institutional Digital Liquidity Fund, known as "BUIDL". With a market cap of $244.8 million, "BUIDL" currently ranks as the second-largest tokenized government securities fund, according to data from Etherscan. It now follows Franklin Templeton's Franklin OnChain U.S. Government Money Fund (FOBXX), valued at $360.2 million. The significant recent deposit to "BUIDL" was made by Ondo Finance, which now owns a 38% stake in the fund. The fund, which pays monthly dividends to investors, was launched on Ethereum via the Securitize protocol.
Ethereum, Polygon, Solana and other blockchains now house U.S. Treasurys valuing over $1 billion. The recent introduction of the BlackRock USD Institutional Digital Liquidity Fund, known as "BUIDL", plays a significant role in this. As of March 20, when "BUIDL" was initiated on Ethereum, it has accumulated a market cap of $244.8 million. Four transactions to this fund over the week, totaling $95 million, have propelled the fund to rank as the second-largest tokenized government securities fund, per Etherscan data. With its $244.8 million in U.S. Treasurys, "BUIDL" currently trails behind the 11-month-old Franklin OnChain U.S. Government Money Fund (FOBXX) from Franklin Templeton, at $360.2 million, based on the findings gathered by 21Shares' parent company via a Dune Analytics dashboard. The dashboard also reports that 17 products now accommodate tokenized U.S. Treasurys totaling $1.08 billion.
The most substantial recent deposit to "BUIDL" of $79.3 million, was made by tokenization firm, Ondo Finance, which supports instantaneous settlements for its own U.S. Treasury-supported token, OUSG. Ondo Finance has recorded a total of $95 million deposits in the form of four transactions, according to Etherscan figures. It now possesses a 38% stake in "BUIDL", as observed by 21.co research strategist Tom Wan in a post dated March 27. The price of "BUIDL" corresponds one-to-one with the U.S. dollar and compensates investors with daily collected dividends each month. "BUIDL" was introduced on Ethereum through the Securitize protocol. A 21.co Dune dashboard claims that the risk and returns of tokenized government treasurys are more promising than stablecoin yields, considering the current high-interest rate condition.
BlackRock CEO Larry Fink expressed that the efficiency of capital markets might be enhanced by blockchain tokenization, a market projected by Boston Consulting Group to scale to $16 trillion by 2030. Besides U.S. Treasurys, multiple other assets such as stocks and real estate can be tokenized as well. Ethereum holds $700 million of all real-world assets (RWA) tokenized on-chain. Stellar and Polygon have the next significant market shares for tokenized products, with Franklin Templeton's FOBXX tokenized on them, standing at $358 million and $13 million, respectively. WisdomTree is another major asset management firm tokenizing RWAs, while blockchain-native entities like Ondo Finance, Backed Finance, Matrixdock, Maple Finance, and Swarm are also playing in this field.
Published At
3/28/2024 8:02:22 AM
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