tl;dr
BlackRock's USD Institutional Digital Liquidity Fund (BUIDL) has become the world's largest treasury fund tokenized on a blockchain, surpassing Franklin Templeton's BENJI in market cap. BUIDL achieved 36.5% monthly growth, amassing a market cap of $375 million within six weeks of its launch. Despite...
BlackRock's BUIDL Becomes World's Largest Treasury Fund Tokenized on Blockchain
BlackRock's BUIDL surpasses Franklin Templeton's BENJI to become the world's largest treasury fund tokenized on blockchain. It achieved 36.5% monthly growth, amassing $375 million market cap in six weeks. This ascent signifies rapid adoption and potential of blockchain in mainstream financial services.
Tokenized Government Securities Market Landscape and Potential for Asset Tokenization
The proportion of tokenized government securities has notably increased, climbing from 0.1% in January 2023 to approximately 1.4% of the total tokenized value today. This trend is expected to accelerate, driven by technological advances and evolving investor preferences.
BlackRock's BUIDL Specifics
BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has become the world’s largest treasury fund tokenized on a blockchain, with a market cap of $375 million. Launched merely six weeks ago, BUIDL quickly captured the market’s attention, achieving significant growth.
The Rise of BUIDL and Decline of BENJI
BUIDL's value surged 36.5%, in contrast to BENJI’s modest growth of 2.1% during the same period. This surge included $95 million from Ondo Finance’s OUSG token.
Asset Tokenization Trend and Market Outlook
BlackRock CEO Larry Fink advocates for the tokenization of real-world assets, reflecting the broader trend of asset tokenization extending beyond government securities to include stocks and real estate. The proportion of tokenized government securities has notably increased, and this trend is expected to accelerate.
Concerns and Predictions
Liquidity remains a primary concern for potential investors in tokenized equities, funds, or bonds, but there is significant market potential for US Treasuries within the crypto domain.
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